Matakuliah
Tahun
: V0232 – Akuntansi Keuangan Hotel
: 2009
Hospitality Financial Accounting
Week 4
Completion of the Accounting Cycle
5-1 Work Sheet Form and Procedure
Work Sheet
Account Titles
Trial Balance
Adjustments
Adjusted Trial
Dr.
Dr.
Dr.
Cr.
Cr.
Cr.
Income
Dr.
Cr.
Balance Sheet
Dr.
Cr.
(Ledger account titles)
(Additional account titles for
1. Prepare a
trial balance
on the work
sheet.
2. Enter
adjustment
data.
3. Enter
adjusted
balances.
4. Extend adjusted balances
to appropriate statement
columns.
5. Total the statement columns,
compute net income, (or net
loss), and complete work sheet.
5-2 Step 1: Prepare a Trial Balance on the
Work Sheet
INTERNATIONAL TRAVEL AGENCY, INC.
Work Sheet
For Month Ended March 31, 2008
Trial Balance
Account Titles
Cash
Dr.
Cr.
15
Accounts Receivable
5
Prepaid Insurance
4
Office Equipment
20
Step 1
Accumulated Depreciation
Accounts Payable
4
Common Stock
Dividends
10
2
Travel Service Revenue
20
26
Depreciation Expense
2
Rent Expense
2
Salaries Expense
10
Totals
60
60
Trial balance
amounts are taken
directly from
ledger accounts.
5-3 Step 2: Enter the Adjustments in the
Adjustments Column
INTERNATIONAL TRAVEL AGENCY, INC.
Work Sheet
For Month Ended March 31, 2008
Step 2
Trial Balance
Account Titles
Cash
Dr.
Adjustments
Cr.
Dr.
15
Accounts Receivable
5
Prepaid Insurance
4
Office Equipment
20
Accumulated Depreciation
(a) 1
4
Accounts Payable
10
Common Stock
20
Dividends
(b) 2
ADJUSTMENT DATA:
26
Depreciation Expense
2
Rent Expense
2
Salaries Expense
10
Totals
60
(a)
Prepaid Insurance expired
during March, $1.
(b)
Depreciation expense on
office equipment for March,
$2.
(c)
Salaries expense incurred at
the end of March but not yet
paid, $5.
(b) 2
(c) 5
60
(a) 1
Salaries Payable
Totals
Enter adjustment amounts in
appropriate columns, total
adjustments columns and check
for equality.
2
Travel Service Revenue
Insurance Expense
Cr.
(c) 5
8
8
5-4 Step 3: Enter the Adjusted Balances in the
Adjusted Trial Balance
INTERNATIONAL TRAVEL AGENCY, INC.
Work Sheet
For Month Ended March 31, 2008
Trial Balance
Account Titles
Cash
Dr.
Adjustments
Cr.
Dr.
Cr.
Dr.
Cr.
15
15
Accounts Receivable
5
5
Prepaid Insurance
4
Office Equipment
20
Accumulated Depreciation
Step 3
Adjusted Trail Balance
(a) 1
3
20
4
(b) 2
6
Accounts Payable
10
10
Common Stock
20
20
Dividends
2
Travel Service Revenue
26
Depreciation Expense
2
Rent Expense
2
Salaries Expense
10
Totals
60
Insurance Expense
2
26
(b) 2
2
(c) 5
15
(a) 1
1
60
Salaries Payable
Totals
4
(c) 5
8
8
5
67
67
Combine trial balance
amounts with
adjustment amounts
to obtain the adjusted
trail balance.
5-5 Step 4: Extend the Adjusted Trial Balance to
the Appropriate Financial Statements
INTERNATIONAL TRAVEL AGENCY, INC.
Work Sheet
For Month Ended March 31, 2008
Trial Balance
Account Titles
Cash
Dr.
Adjustments
Cr.
Dr.
Adjusted Trail
Cr.
Dr.
Income Statement
Cr.
Dr.
Cr.
Balance Sheet
Dr.
Cr.
15
15
15
Accounts Receivable
5
5
5
Prepaid Insurance
4
3
3
Office Equipment
20
20
20
Accumulated Depreciation
(a) 1
4
(b) 2
6
6
Accounts Payable
10
10
10
Common Stock
20
20
20
Dividends
2
Travel Service Revenue
26
Depreciation Expense
2
Rent Expense
2
Salaries Expense
10
Totals
60
Insurance Expense
2
26
(b) 2
26
4
4
2
2
(c) 5
15
15
(a) 1
1
1
60
Salaries Payable
Totals
2
(c) 5
8
8
5
67
67
5
22
26
45
41
5-6 Step 5: Total the Statement Columns,
Compute Net Income, and Complete the Work
Sheet
INTERNATIONAL TRAVEL AGENCY, INC.
Work Sheet
For Month Ended March 31, 2008
Trial Balance
Account Titles
Cash
Dr.
Adjustments
Cr.
Dr.
Adjusted Trail Balance
Cr.
Dr.
15
Accounts Receivable
5
Prepaid Insurance
4
Office Equipment
20
Accumulated Depreciation
Net Income is extended to the credit column
of the balance sheet columns. (Net loss
would be extended to the debit column.)
Step 5
(a) 1
Cr.
Dr.
Balance Sheet
Cr.
Dr.
Cr.
15
15
5
5
3
3
20
20
6
6
Accounts Payable
10
10
10
Common Stock
20
20
20
Dividends
4
Income Statement
2
Travel Service Revenue
2
26
Depreciation Expense
2
Rent Expense
2
Salaries Expense
10
Totals
60
Insurance Expense
(b) 2
26
(b) 2
Net Income
Totals
26
4
4
2
2
(c) 5
15
15
(a) 1
1
1
60
Salaries Payable
Totals
2
(c) 5
8
8
5
67
67
5
22
26
45
4
26
41
4
26
45
45
5-7 Financial Statements
INTERNATIONAL TRAVEL AGENCY
Income Statement
For the Month Ended March 31, 2008
INTERNATIONAL TRAVEL AGENCY
Balance Sheet
March 31, 2008
Revenue
Assets
Travel service revenue
$26
Expenses
Salaries expense
$15
Cash
$ 15
Accounts receivable
5
Prepaid insurance
3
Depreciation expense
4
Office Equipment
Rent expense
2
Less: Accumulated depreciation
Insurance expense
1
Total assets
Total expenses
Net Income
$ 20
6
14
37
22
Liabilities and Stockholders’ Equity
$4
Liabilities
Accounts payable
INTERNATIONAL TRAVEL AGENCY
Retained Earnings Statement
For the Month Ended March 31, 2008
Retained earnings, March 1
Add: Net Income
Retained Earnings, March 31
Salaries payable
5
Total liabilities
$15
Stockholders’ equity
$0
Common Stock
20
4
4
Less: Dividends
$ 10
2
$ 2
Retained earnings
Total liabilities and stockholders’ equity
2
$ 37
5-8 Closing Process
(Individual)
Expenses
Dr. Bal.
Temporary
Accounts
(Individual)
Revenues
To Income
To Income
Dividends
Cr. Bal.
Dr. Bal.
To Retained
1
2
Income Summary
Expenses
Revenues
Net Income to Retained
Net Loss to Retained
4
3
Retained Earnings
Permanent
Accounts
Net Loss
Dividends
Net Income
5-9 Closing Entries
GENERAL JOURNAL
Date
March
31
March
31
Account Titles and Explanation
Closing Entries
(1)
Travel Service Revenue
Income Summary
(To close revenue account)
(2)
Income Summary
Depreciation Expense
Rent Expense
Salaries Expense
Insurance Expense
(To close expense accounts)
Ref.
Page 4
Credit
Debit
26
26
22
4
2
15
1
(3)
31
Income Summary
Retained Earnings
(To close net income to retained earnings)
4
4
(4)
31
Retained Earnings
Dividends
(To close dividends to retained earnings)
2
2
5-10 Accounting Cycle
(9)
Prepare a post-closing
trial balance
(8)
Journalize and post
closing entries
(7)
Prepare financial
statements:
Income statement
Retained earnings
statement
Balance sheet
(1)
Analyze business
transactions
Steps in the
Accounting
Cycle
(2)
Journalize the
transactions
(3)
Post to ledger
accounts
(4)
Prepare a trial balance
Work sheet
Optional
(6)
Prepare an adjusted
trial balance
(5)
Journalize and post
adjusting entries:
Prepayments/Accruals
(The steps in the accounting cycle are performed in sequence and are repeated in each accounting period.)
5-11 Standard Classifications
CLASSIFIED BALANCE SHEET
ASSETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT ASSETS
1.
2.
3.
4.
Cash
Short-term Investments
Receivables
Prepaid Expenses
LONG-TERM ASSETS
1.
2.
Stocks
Bonds
1.
2.
3.
4.
PROPERTY, PLANT, AND EQUIPMENT
Land
Less:
Buildings
Accumulated
Equipment
Depreciation
Furniture
>
INTANGIBLE ASSETS
1.
2.
3.
Patents
Copyrights
Trademarks
1.
2.
3.
4.
5.
CURRENT LIABILITIES
Notes Payable
Account Payable
Unearned Revenue
Salaries Payable
Taxes Payable
1.
2.
3.
LONG-TERM LIABILITIES
Long-term Notes Payable
Mortgage Payable
Bonds Payable
STOCKHOLDERS’ EQUITY
1.
2.
Common Stock
Retained Earnings