Debit Assets

(+) Expenses
Dividends
Accumulated Depreciation
Prepaid Expenses

Credit Liabilities
(+) Share Capital
Retained Earnings
Revenues
Unearned Revenues

Prepaid expenses assets overstated dr exp

exp under cr assets
Unearned revenues liabilities over dr rev
rev under cr liabilities
Accrued revenues assets under dr assets AR
rev under cr rev
Accrued expenses exp under dr exp
liabilities under cr liabilities AP

Net Income = Total Revenues - Total Expenses

FOB Destination Seller pays

FOB Shipping Point Buyer pays
Income Statement (Partial)

Sales
Sales Revenue
Less: Sales Returns and Allowances
Net sales
Cost of Goods Sold
Inventory, January 1
Purchases
Less: Purchases Returns and Allowances
Purchase Discounts
Net purchases
Add: Freight-in
Cost of goods purchased
Cost of goods available for sale
Less: Inventory, December 31
Cost of Goods Sold
Gross Profit
 21,540,000
510,000
21,030,000

1,215,000
13,200,000
192,000
360,000 552,000
12,648,000
165,000
12,813,000
14,028,000
1,950,000
12,078,000
8,952,000
Account Titles Debit Credit
Service Revenue 4300
Income Summary 4300

Income Summary 3416

cr-dr S&W Expense 1260
Mis Expense 256
Supplies Expense 1900

Income Summary 884

Retained Earnings 884

Retained Earnings 550

Dividends 550

Cash 3712
AR 3904
Supplies 480
AP 1382
USP 160
SW Payable 460
Retained Earnings 1994
Share Capital 4100
8096 8096
Account Titles Trial Balance Column1
Dr Cr
AR 25000
Prepaid Insurance 26000
Supplies 7000
Accumulated Depreciation - Equipment 12000
SnW Payable 0
Service Revenue 88000
Insurance Expense
Depreciation Expense
Supplies Expense
SnW Expense 43400

Column1 Column2 Column3

Accounts Receivable 9000
Service Revenue
Insurance Expense 6000
Prepaid Insurance
Supplies Expense 4500
Supplies
Depreciation Expense 10000
Accumulated Depreciation - Equipment
SnW Expense 5600
SnW Payable
Adjusted Column2
Dr Cr
34000
20000
2500
22000
5600
97000
6000
10000
4500
49000

Column4

9000

6000

4500

10000

5600
Revenues 61000 Retained Earnings 2000
Expenses 50700 Add: Net income 10300
Net income 10300 Less: Dividends 7600
4700

Column1 Account Titles Column2 Dr Cr

1 Service Revenue 61000
Income Summary 61000
2 Income Summary 50700
Expenses 50700
3 Income Summary 10300
Retained Earnings 10300
4 Retained Earnings 7600
Dividends 7600

Column1 Dr Cr
Cash 5300
AR 10800
Supplies 1500
Prepaid Ins 2000
Equipment 27000
Acc Dep 5600
Notes Payable 15000
AP 6100
SnW Payable 3600
Interest Payable 600
Share Cap 11000
RE 4700
46600 46600
 Total assets 46600
Liabilities 30900
Stockholders' Equity 15700
0

Retained Earnings Column1 Column2 Column3 Column4

Date Explanation Ref. Debit Credit
Balance
Close net income J14 10300
Close dividends J14 7600

Income Summary Column1 Column2 Column3 Column4

Date Explanation Ref. Debit Credit
Close revenues 61000
Close expenses J14 50700
Close net income J14 10300
No. 320
Balance
2000
12300
4700

No. 350
Balance
61000
10300
0
Revenues 60000 Retained Earnings 4500
Expenses 37700 Add: Net Income 22300
Net Income 22300 Less: Dividends 11000
15800

Column1 Account Titles Column2 Dr Cr

1 Service Revenue 60000
Income Summary 60000
2 Income Summary 37700
Expenses 37700
3 Income Summary 22300
Retained Earnings 22300
4 Retained Earnings 11000
Dividends 11000

Column1 Dr Cr
Cash 8800
AR 10800
Prepaid Ins 2800
Equipment 24000
Acc Dep 4200
AP 9000
SnW Payable 2400
Share cap 15000
RE 15800
46400 46400
 Total assets 46400
Liabilities 15600
Stockholders' Equity 30800
0

Retained Earnings Column1 Column2 Column3 Column4

Date Explanation Ref. Debit Credit
Balance
Close net income J14 22300
Close dividends J14 11000

Income Summary Column1 Column2 Column3 Column4

Date Explanation Ref. Debit Credit
Close revenues 60000
Close expenses J14 37700
Close net income J14 22300
No. 320
Balance
4500
26800
15800

No. 350
Balance
60000
22300
0
Column1 Account Titles
1 Insurance Expense

2 Unearned Rent Revenue

3 Depreciation Expense

4 Interest Expense

Column1 Account Titles

1 Service Revenue

2 Income Summary

3 Income Summary

4 Retained Earnings

Dr
Cash 13800
Accounts Receivable 28300
Prepaid Insurance 2100
Land 67000
Buildings 127000
Equipment 59000
Accounts Payable
Unearned Rent Revenue
Mortgage Payable
Share Capital-Ordinary
Retained Earnings
Accumulated Depreciation - Buildings
Accumulated Depreciation - Equipment
Interest Payable
297200
Column2 Dr Cr
1500
Prepaid Insurance 1500
5000
Rent Revenue 5000
6600
Accumulated Depreciation - Buildings 3000
Accumulated Depreciation - Equipment 3600
10000
Interest Payable 10000

Column2 Dr Cr
124700
Income Summary 124700
99600
Advertising Expense 20500
Utilities Expense 19000
Insurance Expense 1500
Depreciation Expense 6600
SnW Expense 42000
Interest Expense 10000
25100
Retained Earnings 25100
22000
Dividends 22000

Cr

12500
1000
120000
130000
17100
3000
 3600
10000
297200
Trans Account Titles Debit Credit
1 Cash 40000
Share Capital-Ordinary 40000
2 No

3 Prepaid rent 24000

Cash 24000
4 Equipment 30000
Cash 10000
Accounts Payable 20000
5 Prepaid insurance 1800
Cash 1800

6 Supplies 420
Cash 420
7 Supplies 1500
Accounts Payable 1500
8 Cash 8000
Accounts Receivable 12000
Service Revenues 20000
9 Accounts Payable 400
Cash 400
10 Cash 3000
Accounts Receivable 3000
11 Utility Expense 380
Accounts Payable 380
12 Salary Expense 6100
Cash 6100
Cash
40000
24000
10000
1800
420
8000
400
3000
6100
8280

Share Capital
40000
40000

Prepaid rent
24000
24000

Equipment
30000
30000

Accounts Payable
20000
1500
400
380
21480

Accounts Receivable
12000
3000
9000

Service revenues
20000

Utility Expense
 Debit Credit
Cash 3340 270 3610
AR 2812 -270 2542
Supplies 1200 -710 490
Equipment 2600 710 3310
AP 3666 -666
Unearned Rev 1100
Share Capital 8000
Div 800 600 1400
Rev 2480 882
Sal n w exp 3200 700 -600 3300
Utilities Exp 810 810
15462

accrual-basis accounting: nguyên tắc cơ sở dồn tích

3.2
3.3
3.4
 3000
1100
8000

3362

15462
Date Account Titles Ref Debit
31 Insurance Expense 722 1200
Prepaid Insurance 130
Supplies Expense 631
Supplies 126
Depreciation Expense 619 2550
Accumulated Dep buildings 142
Accumulated Dep equipment 150
Credit

1200

1800
750
comparability
going concern assumption
materiality
full disclosure principle
time period assumption
relevance
historical cost principle
consistency
economic entity assumption
faithful representation
monetary unit assumption
expense recognition principle
Date Account Titles Column1 Ref
1 Supplies Expense 631
Supplies 126
2 Utilities Expense 732
Accounts Payable 201
3 Insurance Expense 722
Prepaid Insurance 130
4 Unearned Service Revenue 209
Service Revenue 400
5 Salaries and Wages Expense 726
Salaries and Wages Payable 212
6 Depreciation Expense 717
Accumulated Dep - Equip 150
7 Accounts Receivable 112
Service Revenue 400

Date Explanation Ref Dr

Cash Balance 101
AR Balance 112
Adjusting J4 1700
Supplies Balance
Adjusting 126
Prep Ins Balance
Adjusting 130
Equipment Balance 149
Acc Dep - Equip Adjusting 150
AP Balance
Adjusting 201
USR Balance
Adjusting 209 1600
Sal Payable Adjusting 212
Share Cap Balance 311
Service Rev Balance
Adjusting 400
Adjusting
Supplies Exp Adjusting 631 900
Dep Exp Adjusting 717 190
Ins Exp Adjusting 722 150
Sal Exp Balance
Adjusting 726 1104
Rent Exp Balance 729
Utilities Exp Adjusting 732 250
Dr Cr Dr
900 Cash 4500
900 AR 7700
250 Supplies 1000
250 Prep Ins 3450
150 Equipment 11400
150 Acc Dep - Equip
1600 AP
1600 USR
1104 Sal Payable
1104 Share Cap
190 Service Rev
190 Supplies Exp 900
1700 Dep Exp 190
1700 Ins Exp 150
Sal Exp 7504
Rent Exp 900
Utilities Exp 250
Cr Balance 37944
4500
6000
7700
1900
900 1000
3600
150 3450
11400
190 190
4500
250 4750
2000
400
1104 1104
18700
9500
1600 11100
1700 12800
900
190
150
6400
7504
900
250
Cr

190
4750
400
1104
18700
12800

37944