Accounting Principles, Ninth Edition

Chapter 3
Adjusting the Accounts
Disiapkan oleh:
Dra. Lilik Purwanti, M.Si, AK

09/11/15

Lilik Purwanti, Pengantar Akuntansi I

Study
Study Objectives
Objectives
1.

Explain the time period assumption.

2. Explain the accrual basis of accounting.

3. Explain the reasons for adjusting entries.
4. Identify the major types of adjusting entries.
5. Prepare adjusting entries for deferrals.
6. Prepare adjusting entries for accruals.
7. Describe the nature and purpose of an adjusted

trial balance.

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Lilik Purwanti, Pengantar Akuntansi I

Adjusting
Adjusting the
the Accounts
Accounts

The Basics of
Adjusting Entries

Timing Issues

Fiscal and
calendar years
Accrual- vs. cashbasis accounting
Recognizing
revenues and
expenses

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Types of adjusting
entries
Adjusting entries
for deferrals
Adjusting entries
for accruals
Summary of
journalizing and
posting

Lilik Purwanti, Pengantar Akuntansi I

The Adjusted Trial

Balance and
Financial
Statements
Preparing the
adjusted trial
balance
Preparing
financial
statements

TIMING
TIMING ISSUES
ISSUES
Akuntan membagi masa ekonomisuatu
perusahaan ke dalam beberapa periode waktu.
(Time Period Assumption).
Jan.

Feb.

Mar.

Apr.

.....

Dec.

Generally a month, a quarter, or a year.

Fiscal year vs. calendar year
Dikenal dengan Asumsi Periodisitas
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Lilik Purwanti, Pengantar Akuntansi I

Timing
Timing Issues
Issues

Review
The time period assumption states that:
a. revenue should be recognized in the accounting
period in which it is earned.
b. expenses should be matched with revenues.
c.

the economic life of a business can be divided

into artificial time periods.

d. the fiscal year should correspond with the

calendar year.

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Lilik Purwanti, Pengantar Akuntansi I

Timing
Timing Issues
Issues

Accrual- vs. Cash-Basis Accounting

Accrual-Basis Accounting
Transactions dicatat pada periode terjadinya.
Revenues diakui ketika diperoleh bukan ketika
kas diterima.
Expenses diakui ketika terjadi, bukan ketika
dibayar.

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Lilik Purwanti, Pengantar Akuntansi I

Timing
Timing Issues
Issues

Accrual- vs. Cash-Basis Accounting

Cash-Basis Accounting
Revenues diakui ketika kas diterima.
Expenses diakui ketika kas dibayar.
Cash-basis accounting tidaks esuai
dengangenerally accepted accounting principles
(GAAP = prisip akuntansi yang berlaku umum).

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Lilik Purwanti, Pengantar Akuntansi I

Timing
Timing Issues
Issues

Pengakuan Revenues and Expenses

Prinsip Pengakuan Revenue
Companies mengakui revenue
pada perioda akuntansi
dimana pendapatan earned
(diperoleh).
Pada perusahaan jasa,
revenue diperoleh ketika
jasa telah dilakukan.

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Lilik Purwanti, Pengantar Akuntansi I

Timing
Timing Issues
Issues

Recognizing Revenues and Expenses

Matching Principle
(Prinsip Penandingan)
Penandingan expenses with
revenues pada periode ketika
perusahaan berusaha untuk
menggenerate revenues.
The expenses follow the
revenues.

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Lilik Purwanti, Pengantar Akuntansi I

Timing
Timing Issues
Issues

Review

One of the following statements about the accrual basis

of accounting is false. That statement is:
a. Events that change a companys financial
statements are recorded in the periods in which
the events occur.
b. Revenue is recognized in the period in which it is
earned.
c. The accrual basis of accounting is in accord with
generally accepted accounting principles.
d. Revenue is recorded only when cash is received, and
expenses are recorded only when cash is paid.

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Timing
Timing Issues
Issues

Review

One of the following statements about the accrual basis

of accounting is false. That statement is:
a. Events that change a companys financial
statements are recorded in the periods in which
the events occur.
b. Revenue is recognized in the period in which it is
earned.
c. The accrual basis of accounting is in accord with
generally accepted accounting principles.
d. Revenue is recorded only when cash is received, and
expenses are recorded only when cash is paid.

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11

The
The Basics
Basics of
of Adjusting
Adjusting Entries
Entries
Adjusting entries memungkinkan melaporkan
jumlah yang benar on the balance sheet and
on the income statement.
A company harus membuat adjusting entries
setiapkali menyusun financial statements.

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Accrual Basis of Accounting

Revenue
Revenue reported
reported when
when earned
earned

(pendapatan
(pendapatan dilaporkan
dilaporkan saat
saat
diperoleh)
diperoleh)

Expense
Expense reported
reported when
when incurred
incurred
(beban
(beban dilaporkan
dilaporkan saat
saat terjadi)
terjadi)

Properly
Properly matches
matches revenues
revenues and
and
expenses
expenses in
in determining
determining net
net income
income
(penandingan
(penandingan pendapatan
pendapatan dan
dan
beban
beban untuk
untuk menentukan
menentukan laba
laba
bersih)
bersih)

Requires
Requires adjusting
adjusting entries
entries at
at end
end of
of
period
period (perlu
(perlu jurnal
jurnal penyesuaian
penyesuaian
pada
pada akhir
akhir periode)
periode)
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Timing
Timing Issues
Issues

Review
Adjusting entries are made to ensure that:
a. expenses are recognized in the period in which
they are incurred.
b. revenues are recorded in the period in which
they are earned.
c. balance sheet and income statement accounts
have correct balances at the end of an
accounting period.
d. all of the above.
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Timing
Timing Issues
Issues

Review
Adjusting entries are made to ensure that:
a. expenses are recognized in the period in which
they are incurred.
b. revenues are recorded in the period in which
they are earned.
c. balance sheet and income statement accounts
have correct balances at the end of an
accounting period.
d. all of the above.
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TYPES OF ADJUSTING ENTRIES

Deferred Expenses (Prepaid Expenses)

Beban yang ditangguhkan, termasuk

pemakaian aset tetap (depresiasi)
Deferred Revenue (Unearned Revenue)

Pendapatan yang ditangguhkan/diterima

dimuka
Accrued Expenses (Accrued Liabilities)

Beban yang terhutang/masih harus dibayar

Accrued Revenues (Accrued Expenses)

Pendapatan yang masih harus diterima

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Trial
Trial Balance
Balance
Trial Balance Each account is analyzed to determine whether
it is complete and up-to-date.
Illustration 3-3

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4 Akuntansi
Identify
Lilik Purwanti,SO
Pengantar
I

the major types of adjusting entries.

17

Adjusting
Adjusting Entries
Entries for
for Deferrals
Deferrals
Deferrals are either:
Prepaid expenses

OR
Unearned revenues.

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5 IPrepare
Lilik Purwanti, PengantarSO
Akuntansi

adjusting entries for deferrals.

18

Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid
Expenses
Expenses
Pembayaran kas yang dicatat sebagai asset karena
service or benefit akan diterima in the future.
Cash Payment

BEFORE

Expense Recorded

Contoh Prepayments:
insurance
supplies
advertising

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Lilik Purwanti, Pengantar Akuntansi I

rent
maintenance on equipment
fixed assets (depreciation)

19

Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses

Prepaid Expenses
Costs that expire sesuai dengan berlalunya waktu
or melalui penggunaan.
Adjusting entries (1) untuk mencatat expenses
yang terpakai ke periode akuntansi sekarang, and
(2) untuk menunjukkan costs yang belum terpakai
dalam akun asset.

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20

Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses
Adjusting entries for prepaid expenses
Illustration 3-4

Increases (debits) an expense account and

Decreases (credits) an asset account.

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Lilik Purwanti, Pengantar Akuntansi I

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Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses
Illustration: Pioneer Advertising Agency purchased advertising
supplies costing $2,500 on October 5. Sierra recorded the
payment by increasing (debiting) the asset Advertising Supplies.
This account shows a balance of $2,500 in the October 31 trial
balance. An inventory count at the close of business on October
31 reveals that $1,000 of supplies are still on hand.
Oct. 31

Advertising supplies expense

Advertising supplies

1,500
1,500
Illustration 3-5

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22

Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses
Illustration: On October 4, Pioneer Advertising Agency paid
$600 for a one-year fire insurance policy. Coverage began on
October 1. Pioneer recorded the payment by increasing (debiting)
Prepaid Insurance. This account shows a balance of $600 in the
October 31 trial balance. Insurance of $50 ($600 / 12) expires
each month.
Oct. 31

Insurance expense
Prepaid insurance

50
50
Illustration 3-6

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Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses
Depreciation
Buildings, equipment, and vehicles (long-lived
assets) are recorded as assets, rather than an
expense, in the year acquired.
Companies report a portion of the cost of a longlived asset as an expense (depreciation) during
each period of the assets useful life (Matching
Principle).

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Land
Land

Land has an infinite life; therefore,

it does not depreciate.
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Building
Building

A building has a limited life, so it must be depreciated.

The contra account used in the adjusting entry is
Accumulated DepreciationBuilding
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Equipment
Equipment

Because equipment has a limited life, it

depreciates. The contra account used is
Accumulated DepreciationEquipment
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Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses
Illustration: Pioneer Advertising estimates depreciation on the
office equipment to be $480 a year, or $40 per month.
Oct. 31

Depreciation expense
Accumulated depreciation

40
40
Illustration 3-7

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Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses
Depreciation (Statement Presentation)
Accumulated Depreciation is a contra asset account.
Appears just after the account it offsets
(Equipment) on the balance sheet.
Illustration 3-8

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29

Adjusting
Adjusting Entries
Entries for
for Prepaid
Prepaid Expenses
Expenses
Summary

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Illustration 3-9

Lilik Purwanti, Pengantar Akuntansi I

30

Adjusting
Adjusting Entries
Entries for
for Unearned
Unearned Revenues
Revenues
Receipt of cash that is recorded as a liability because
the revenue has not been earned.
Cash Receipt

BEFORE

Revenue Recorded

Unearned revenues often occur in regard to:

rent
airline tickets
school tuition

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Lilik Purwanti, Pengantar Akuntansi I

magazine subscriptions
customer deposits

31

Adjusting
Adjusting Entries
Entries for
for Unearned
Unearned Revenues
Revenues
Unearned Revenues
Company makes an adjusting entry to record the
revenue that has been earned and to show the
liability that remains.
The adjusting entry for unearned revenues results
in a decrease (a debit) to a liability account and an
increase (a credit) to a revenue account.

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32

Adjusting
Adjusting Entries
Entries for
for Unearned
Unearned Revenues
Revenues
Adjusting entries for unearned revenues
Illustration 3-10

Decrease (a debit) to a liability account and

Increase (a credit) to a revenue account.

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Lilik Purwanti, Pengantar Akuntansi I

33

Adjusting
Adjusting Entries
Entries for
for Unearned
Unearned Revenues
Revenues
Illustration: Pioneer Advertising Agency received $1,200 on
October 2 from R. Knox for advertising services expected to be
completed by December 31. Unearned Service Revenue shows a
balance of $1,200 in the October 31 trial balance. Analysis reveals
that the company earned $400 of those fees in October.
Oct. 31

Unearned service revenue

Service revenue

400
400
Illustration 3-11

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Lilik Purwanti, Pengantar Akuntansi I

34

Adjusting
Adjusting Entries
Entries for
for Unearned
Unearned Revenues
Revenues
Summary
Illustration 3-12

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Lilik Purwanti, Pengantar Akuntansi I

35

Adjusting
Adjusting Entries
Entries for
for Accruals
Accruals
Made to record:
Revenues earned and

OR
Expenses incurred
in the current accounting period that have not
been recognized through daily entries.

09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

36

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Revenues
Revenues
Revenues earned but not yet received in cash or
recorded.

Adjusting entry results in:

Revenue Recorded

BEFORE

Cash Receipt

Accrued revenues often occur in regard to:

rent
interest
services performed

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SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

37

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Revenues
Revenues
Accrued Revenues
An adjusting entry serves two purposes:
(1) It shows the receivable that exists, and
(2) It records the revenues earned.

09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

38

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Revenues
Revenues
Adjusting entries for accrued revenues
Illustration 3-13

Increases (debits) an asset account and

Increases (credits) a revenue account.

09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

39

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Revenues
Revenues
Illustration: In October Pioneer Advertising Agency earned
$200 for advertising services that had not been recorded.
Oct. 31

Accounts Receivable
Service Revenue

200
200
Illustration 3-14

09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

40

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Revenues
Revenues
Summary
Illustration 3-15

09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

41

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Expenses
Expenses
Expenses incurred but not yet paid in cash or recorded.

Adjusting entry results in:

Expense Recorded

BEFORE

Cash Payment

Accrued expenses often occur in regard to:

rent
interest

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SO 6 I
Lilik Purwanti, Pengantar Akuntansi

taxes
salaries

Prepare adjusting entries for accruals.

42

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Expenses
Expenses
Accrued Expenses
An adjusting entry serves two purposes:
(1) It records the obligations, and
(2) It recognizes the expenses.

09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

43

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Expenses
Expenses
Adjusting entries for accrued expenses
Illustration 3-16

Increases (debits) an expense account and

Increases (credits) a liability account.
09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

44

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Expenses
Expenses
Illustration: Pioneer Advertising Agency signed a three-month
note payable in the amount of $5,000 on October 1. The note
requires Pioneer to pay interest at an annual rate of 12%.
Illustration 3-17

Oct. 31

Interest expense
Interest payable

50
50
Illustration 3-18

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SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

45

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Expenses
Expenses
Illustration: Pioneer Advertising Agency last paid salaries on
October 26; the next payment of salaries will not occur until
November 9. The employees receive total salaries of $2,000 for a
five-day work week, or $400 per day. Thus, accrued salaries at
October 31 are $1,200 ($400 x 3 days).
Oct. 31

Salaries expense
Salaries payable

1,200
1,200
Illustration 3-20

09/11/15

SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

46

Adjusting
Adjusting Entries
Entries for
for Accrued
Accrued Expenses
Expenses
Summary
Illustration 3-21

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SO 6 I
Lilik Purwanti, Pengantar Akuntansi

Prepare adjusting entries for accruals.

47

The
The Adjusted
Adjusted Trial
Trial Balance
Balance
After all adjusting entries are journalized and posted
the company prepares another trial balance from the
ledger accounts (Adjusted Trial Balance).
Its purpose is to prove the equality of debit balances
and credit balances in the ledger.

09/11/15

SO 7 Lilik
Describe
the nature
and
purpose of an adjusted trial balance.
Purwanti, Pengantar
Akuntansi
I
48

The
The Adjusted
Adjusted Trial
Trial Balance
Balance

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Lilik Purwanti, Pengantar Akuntansi I

49

The
The Adjusted
Adjusted Trial
Trial Balance
Balance

Review Question
Which of the following statements is incorrect concerning
the adjusted trial balance?
a. An adjusted trial balance proves the equality of the
total debit balances and the total credit balances in
the ledger after all adjustments are made.
b. The adjusted trial balance provides the primary basis
for the preparation of financial statements.
c. The adjusted trial balance lists the account balances
segregated by assets and liabilities.
d. The adjusted trial balance is prepared after the
adjusting entries have been journalized and posted.
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SO 7

Describe
the nature
and
Lilik
Purwanti, Pengantar
Akuntansi
I

purpose of an adjusted trial balance.

50

Preparing
Preparing Financial
Financial Statements
Statements
Financial
Financial Statements
Statements are
are prepared
prepared directly
directly from
from the
the
Adjusted
Adjusted Trial
Trial Balance.
Balance.

Balance
Sheet

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Income
Statement

Owners
Equity
Statement

SO 7 Lilik
Describe
the nature
and
purpose of an adjusted trial balance.
Purwanti, Pengantar
Akuntansi
I
51

Preparing
Preparing Financial
Financial Statements
Statements
Illustration 3-25
Preparation of
the income
statement and
owners
equity statement
from the
adjusted trial
balance

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Lilik Purwanti, Pengantar Akuntansi I

52

Preparing
Preparing Financial
Financial Statements
Statements
Illustration 3-26

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53

Alternative
Alternative Treatment
Treatment of
of Prepaid
Prepaid Expenses
Expenses
and
and Unearned
Unearned Revenues
Revenues
Some companies use an alternative treatment
for prepaid expenses and unearned revenues.
When a company prepays an expense, it debits
that amount to an expense account.
When a company receives payment for future
services, it credits the amount to a revenue
account.

09/11/15

SO 8 PrepareLilik
adjusting
entries
for Ithe alternative treatment of deferrals.
Purwanti, Pengantar
Akuntansi
54

Alternative
Alternative Treatment
Treatment for
for Prepaid
Prepaid Expenses
Expenses
Illustration: Pioneer Advertising purchased supplies on
October 5 for $2,500 and debited Advertising
Supplies Expense for the full amount. What if an inventory
of $1,000 of advertising supplies remains on October 31?
Oct. 31

Advertising supplies

1,000

Advertising supplies expense

1,000
Illustration 3A-1

09/11/15

SO 8 PrepareLilik
adjusting
entries
for Ithe alternative treatment of deferrals.
Purwanti, Pengantar
Akuntansi
55

Alternative
Alternative Treatment
Treatment for
for Prepaid
Prepaid Expenses
Expenses
Adjustment approachesa comparison
Illustration 3A-2

09/11/15

SO 8 PrepareLilik
adjusting
entries
for Ithe alternative treatment of deferrals.
Purwanti, Pengantar
Akuntansi
56

Alternative
Alternative Treatment
Treatment for
for Unearned
Unearned Revenues
Revenues
Illustration: Assume that Pioneer Advertising received
$1,200 for future services on October 2 and credited the
entire amount to Service Revenue. If at the statement
date Pioneer has not performed $800 of the services, it
would make an adjusting entry.
Oct. 31

Service revenue
Unearned service revenue

800
800
Illustration 3A-4

09/11/15

SO 8 PrepareLilik
adjusting
entries
for Ithe alternative treatment of deferrals.
Purwanti, Pengantar
Akuntansi
57

Alternative
Alternative Treatment
Treatment for
for Unearned
Unearned Revenues
Revenues
Adjustment approachesa comparison
Illustration 3A-5

09/11/15

SO 8 PrepareLilik
adjusting
entries
for Ithe alternative treatment of deferrals.
Purwanti, Pengantar
Akuntansi
58

Summary
Summary of
of Additional
Additional Adjustment
Adjustment Relationships
Relationships
Illustration 3A-7

09/11/15

SO 8 PrepareLilik
adjusting
entries
for Ithe alternative treatment of deferrals.
Purwanti, Pengantar
Akuntansi
59

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