ĐẠI HỌC FPT CẦN THƠ

Chapter 4
COMPLETING THE
ACCOUNTING CYCLE

HOÀN THIỆN CHU TRÌNH GHI SỔ KẾ TOÁN

(KHÓA SỔ KẾ TOÁN CUỐI KÌ)

Chapter 4: Completing The Accounting Cycle Slide 1

 OBJECTIVES

• Explain why temporary accounts are closed

each period.

• Identify steps in the accounting cycle.

• Explain and prepare a classified balance sheet.

Chapter 4: Completing The Accounting Cycle Slide 2

 OVERVIEW

Học xong chương này bạn phải:

• Hiểu được ý nghĩa của bút toán kết chuyển hay còn
gọi là khóa sổ kế toán cuối kỳ.

• Thành thạo các bước kết chuyển cuối kỳ như đã

được giới thiệu.

Chapter 4: Completing The Accounting Cycle Slide 3

 Chapter 1, 2
10 steps for Accounting Cycle

Chapter
4

Chapter 3

Chapter 4: Completing The Accounting Cycle Slide 4

Chapter 4: Completing The Accounting Cycle Slide 5
 CLOSING PROCESS
QUY TRÌNH KHÓA SỔ KẾ TOÁN

Resets revenue,
expense and Identify accounts for closing.
withdrawal account
balances to zero at
the end of the period.
Record and post closing
entries.
Helps summarize a
period’s revenues
and expenses in the Prepare post-closing trial
Income Summary balance.

Chapter 4: Completing The Accounting Cycle Slide 6

 TEMPORARY AND PERMANENT ACCOUNTS
TÀI KHOẢN TẠM THỜI VÀ TÀI KHOẢN THỰC (lâu dài)

Revenues Assets

Owner’s capital
Withdrawals

Liabilities
Expenses

TK LÂU DÀI
TÀI KHOẢN
TẠM THỜI (TKTHỰC)

Temporary Permanent
Accounts Accounts

Income
Summary
These accounts are
The closing process
not closed
applies only to
temporary accounts temporary accounts.

Chapter 4: Completing The Accounting Cycle Slide 7

 Temporary account
Tài khoản tạm thời

Temporary account includes:

Revenue: Tài khoản Doanh thu

Expense: Tài khoản Chi phí

Withdrawal account: Tài khoản rút vốn chủ sở hữu

Income summary account: Tài khoản xác định kết

quả kinh doanh

Chapter 4: Completing The Accounting Cycle Slide 8

 RECORDING CLOSING ENTRIES
CÁC BÚT TOÁN KHÓA SỔ

Close Revenue accounts to

Income Summary Let’s see how
the closing
Close Expense accounts to process works!
Income Summary.
Close Income Summary
account to Owner’s Capital
(Retained earnings).
Close Withdrawals to Owner’s
Capital (Contributed capital).

Chapter 4: Completing The Accounting Cycle Slide 9

 FastForward
Adjusted Trial Balance
December 31, 2015
Cash $ 4,350
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Using the
Accumulated depreciation-Equip. $ 375 adjusted trial
Accounts payable 6,200
Salaries payable 210
balance, let’s
Unearned consulting revenue 2,750 prepare the
C. Taylor, Contributed Capital 30,000
C. Taylor, Withdrawals 200
closing
Consulting revenue 7,850 entries for
Rental revenue 300
Depreciation expense-Equipment 375 FastForward.
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $ 47,685 $ 47,685
Chapter 4: Completing The Accounting Cycle Slide 10
 FastForward
Adjusted Trial Balance
December 31, 2015
Cash $ 4,350
Accounts receivable 1,800 1.CLOSE
Supplies 8,670 REVENUE
Prepaid insurance 2,300
Equipment 26,000
ACCOUNTS
Accumulated depreciation-Equip. $ 375 TO INCOME
Accounts payable 6,200 SUMMARY
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Contributed Capital 30,000
C. Taylor, Withdrawals 200
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $ 47,685 $ 47,685

Chapter 4: Completing The Accounting Cycle Slide 11

 1. CLOSE REVENUE ACCOUNTS
TO INCOME SUMMARY

Dr. Cr.

Now, let’s look at the ledger accounts after

posting this closing entry.

Chapter 4: Completing The Accounting Cycle Slide 12

 1. CLOSE REVENUE ACCOUNTS
TO INCOME SUMMARY

Consulting Revenue
7,850 7,850

Income Summary
8,150
Rental Revenue
300 300

Chapter 4: Completing The Accounting Cycle Slide 13

 FastForward
Adjusted Trial Balance
December 31, 2015
Cash $ 4,350
Accounts receivable 1,800 2.CLOSE
Supplies 8,670
EXPENSE
Prepaid insurance 2,300
Equipment 26,000 ACCOUNTS
Accumulated depreciation-Equip. $ 375 TO INCOME
Accounts payable 6,200 SUMMARY
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Contributed Capital 30,000
C. Taylor, Withdrawals 200
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $ 47,685 $ 47,685
Chapter 4: Completing The Accounting Cycle Slide 14
 2. CLOSE EXPENSE ACCOUNTS
TO INCOME SUMMARY

Dr. Cr.
Dec. 31

Now, let’s look at the ledger accounts after

posting this closing entry.

Chapter 4: Completing The Accounting Cycle Slide 15

 2. CLOSE EXPENSE ACCOUNTS
TO INCOME SUMMARY
Depreciation
Rent Expense
Expense- Eq.
1,000 1,000
375 375
-
-

Salaries Expense Supplies Expense Income Summary

4,365 8,150
1,610 1,610 1,050 1,050
- - 3,785

Insurance Expense Utilities Expense Net Income

100 100 230 230
- -

Chapter 4: Completing The Accounting Cycle Slide 16

 FastForward
Adjusted Trial Balance
December 31, 2015
Cash $ 4,350
Accounts receivable 1,800
3.CLOSE
Supplies 8,670 INCOME
Prepaid insurance 2,300 SUMMARY
Equipment 26,000
Accumulated depreciation-Equip. $ 375
TO OWNER’S
Accounts payable 6,200 CAPITAL
Salaries payable 210 (RETAINED
Unearned consulting revenue 2,750
C. Taylor, Caontributed Capital 30,000
EARNINGS)
C. Taylor, Withdrawals 200
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $ 47,685 $ 47,685
Chapter 4: Completing The Accounting Cycle Slide 17
 3. CLOSE INCOME SUMMARY
TO OWNER’S CAPITAL

Dr. Cr.

Now, let’s look at the ledger accounts after

posting this closing entry.

Chapter 4: Completing The Accounting Cycle Slide 18

 3. CLOSE INCOME SUMMARY
TO OWNER’S CAPITAL

Retained earnings Income Summary

0 4,365 8,150
3,785 3,785
-
3,785

Chapter 4: Completing The Accounting Cycle Slide 19

 FastForward
Adjusted Trial Balance
December 31, 2015
Cash $ 4,350
Accounts receivable 1,800
4.CLOSE
Supplies 8,670 WITHDRAWAS
Prepaid insurance 2,300 TO OWNER’S
Equipment 26,000
Accumulated depreciation-Equip. $ 375
CAPITAL
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Contributed Capital 30,000
C. Taylor, Withdrawals 200
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $ 47,685 $ 47,685

Chapter 4: Completing The Accounting Cycle Slide 20

 4. CLOSE WITHDRAWALS
TO OWNER’S CAPITAL

Dr. Cr.

Now, let’s look at the ledger accounts after

posting this closing entry.

Chapter 4: Completing The Accounting Cycle Slide 21

 4. CLOSE WITHDRAWALS
TO OWNER’S CAPITAL

C. Taylor,
Withdrawals C. Taylor, C.Capital
200 200 200 30,000

- 29,800

Chapter 4: Completing The Accounting Cycle Slide 22

 POST-CLOSING TRIAL BALANCE

FastForward
Post-Closing Trial Balance
December 31, 2015

Cash $ 4,350
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Accumulated depreciation-Equipment $ 375
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C.Taylor, Contributed Capital 29,800
Retained earnings 3,785
Totals $ 43,120 $ 43,120

Chapter 4: Completing The Accounting Cycle Slide 23

 FastForward
Income Statement
For the Month Ended December 31, 2015

Revenues:
Consulting revenue $7,850
Rental revenue 300
Total revenue $8,150
Operating expenses
Depr. Expense - Equip $375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Total expense 4,365
Net income $3,785

Chapter 4: Completing The Accounting Cycle Slide 24

C.Taylor, Capital = C.Taylor Contributed capital + retained earnings

Chapter 4: Completing The Accounting Cycle Slide 25

 FastForward
Work Sheet
For Month Ended December 31, 2015
Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 4,350
Accounts receivable -
Supplies 9,720
Prepaid insurance 2,400
Equipment 26,000
Accum. depr. - Equip. -
Accounts payable
Salaries payable
6,200
-
First, enter the
Unearned consulting revenue
C. Taylor, Contributed Capital
3,000
30,000
unadjusted
C. Taylor, Withdrawals
Consulting revenue
200
5,800
amounts to the
Rental revenue 300
worksheet.
Depr. expense -
Salaries expense 1,400
Insurance expense -
Rent expense 1,000
Supplies expense -
Utilities expense 230
Totals 45,300 45,300

Chapter 4: Completing The Accounting Cycle Slide 26

 FastForward
Work Sheet
For Month Ended December 31, 2015
Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 4,350
Accounts receivable - f 1,800
Supplies 9,720 b 1,050
Prepaid insurance 2,400 a 100
Equipment 26,000
Accum. depr. - Equip. - c 375
Accounts payable 6,200 Next, enter
Salaries payable - e 210
Unearned consulting revenue 3,000 d 250
the
C. Taylor, Contributed Capital
C. Taylor, Withdrawals
30,000 adjustments.
200
Consulting revenue 5,800 d 250
f 1,800
Rental revenue 300
Depr. expense - c 375
Salaries expense 1,400 e 210
Insurance expense - a 100
Rent expense 1,000
Supplies expense - b 1,050
Utilities expense 230
Totals 45,300 45,300 3,785 3,785

Chapter 4: Completing The Accounting Cycle Slide 27

 FastForward
Prepare Work Sheet
adjusted trial For Month Ended December 31, 2015
balance. Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 4,350 4,350
Accounts receivable - f 1,800 1,800
Supplies 9,720 b 1,050 8,670
Prepaid insurance 2,400 a 100 2,300
Equipment 26,000 26,000
Accum. depr. - Equip. - c 375 375
Accounts payable 6,200 6,200
Salaries payable - e 210 210
Unearned consulting revenue 3,000 d 250 2,750
C. Taylor, Contributed Capital 30,000 - 30,000
C. Taylor, Withdrawals 200 200
Consulting revenue 5,800 d 250 7,850
f 1,800
Rental revenue 300 300
Depr. expense - c 375 375
Salaries expense 1,400 e 210 1,610
Insurance expense - a 100 100
Rent expense 1,000 1,000
Supplies expense - b 1,050 1,050
Utilities expense 230 230
Totals 45,300 45,300 3,785 3,785 47,685 47,685

Chapter 4: Completing The Accounting Cycle Slide 28

 Sort adjusted trial balance
amounts to financial statements.
Adjusted Income Balance Sheet &
Trial Balance Statement Statement of Equity
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 4,350 4,350
Accounts receivable 1,800 1,800
Supplies 8,670 8,670
Prepaid insurance 2,300 2,300
Equipment 26,000 26,000
Accum. depr. - Equip. 375 375
Accounts payable 6,200 6,200
Salaries payable 210 210
Unearned consulting revenue 2,750 2,750
C. Taylor, Contributed Capital 30,000 30,000
C. Taylor, Withdrawals 200 200
Consulting revenue 7,850 7,850
Rental revenue 300 300
Depr. expense 375 375
Salaries expense 1,610 1,610
Insurance expense 100 100
Rent expense 1,000 1,000
Supplies expense 1,050 1,050
Utilities expense 230 230
Totals 47,685 47,685 4,365 8,150 43,320 39,535

Chapter 4: Completing The Accounting Cycle Slide 29

 Total statement columns, compute income or loss, and
balance columns.
Adjusted Income Balance Sheet &
Trial Balance Statement Statement of Equity
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 4,350 4,350
Accounts receivable 1,800 1,800
Supplies 8,670 8,670
Prepaid insurance 2,300 2,300
Equipment 26,000 26,000
Accum. depr. - Equip. 375 375
Accounts payable 6,200 6,200
Salaries payable 210 210
Unearned consulting revenue 2,750 2,750
C. Taylor, Contributed Capital 30,000 30,000
C. Taylor, Withdrawals 200 200
Consulting revenue 7,850 7,850
Rental revenue 300 300
Depr. expense 375 375
Salaries expense 1,610 1,610
Insurance expense 100 100
Rent expense 1,000 1,000
Supplies expense 1,050 1,050
Utilities expense 230 230
Totals 47,685 47,685 4,365 8,150 43,320 39,535
Net income 3,785 3,785
8,150 8,150 43,320 43,320

Chapter 4: Completing The Accounting Cycle Slide 30

 1. PREPARE
THE INCOME STATEMENT
FastForward
Income Statement
For the Month Ended December 31, 2015
Revenues:
Consulting revenue $ 7,850
Rental revenue 300
Total revenues 8,150
Operating expenses: A work sheet
Depr. expense - Equip. $ 375
Salaries expense 1,610 does not
Insurance expense 100
Rent expense 1,000 substitute for
Supplies expense
Utilities expense
1,050
230
financial
Total expenses
Net income
4,365
$ 3,785
statements.
Chapter 4: Completing The Accounting Cycle Slide 31
 FastForward
Income Statement
For the Month Ended December 31, 2015
Revenues:
Consulting revenue
Rental revenue
$ 7,850
300
2. PREPARE
Total revenues
Operating expenses:
8,150
THE STATEMENT
Depr. expense - Equip.
Salaries expense
$ 375
1,610
OF OWNER’S EQUITY
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Total expenses 4,365 FastForward
Net income $ 3,785 Statement of Owner's Equity
For the Month Ended December 31, 2015

C. Taylor, Capital 12/1/15 $ -0-

Investment by owner 30,000
Add: Net income $ 3,785 33,785
Total 33,785
Less: Withdrawal by owner 200
C. Taylor, Capital 12/31/15 $ 33,585

Chapter 4: Completing The Accounting Cycle Slide 32

 FastForward
Statement of Owner's Equity
For the Month Ended December 31, 2015
3. PREPARE THE
C. Taylor, Capital 12/1/15 $ -0-
BALANCE SHEET
Investment by owner 30,000
Add: Net income $ 3,785 33,785
Total 33,785 FastForward
Less: Withdrawal by owner 200 Balance Sheet
C. Taylor, Capital 12/31/15 $ 33,585
December 31, 2015
Assets
Cash $ 4,350
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment $ 26,000
Less: accum. depr. (375) 25,625
Total assets $ 42,745
Liabilities
Accounts payable $ 6,200
Salaries payable 210
Unearned consulting revenues 2,750
Total liabilities $ 9,160
Owner's Equity
C.Taylor, Contributed Capital 29,800
Retained earnings 3,785
Total liabilities and equity $42,745

Chapter 4: Completing The Accounting Cycle Slide 33

 END OF CHAPTER 4

Chapter 4: Completing The Accounting Cycle Slide 34