© 1991 John Petroff

Chapter 3:

PENYELESAIAN SIKLUS AKUNTANSI

PENYEIMBANGAN PENDAPATAN DAN BEBAN
Ada dua cara pencatatan pendapatan dan beban di laporan rugi laba:
basis akrual dan basis kas. Basis akrual adalah metode yang menyeimbangkan
pendapatan dengan beban dan inilah metode yang lebih banyak digunakan.
Pendapatan diseimbangkan dengan pengeluaran saat adanya transaksi,
bukan saat uang yang berpindah tangan. Lain halnya dengan basis kas
di mana pencatatan pendapatan dan beban dilakukan saat uang berpindah
tangan, dan cara ini umumnya tidak layak digunakan untuk macam-macam bentuk usaha.

INTRODUCTION TO THE ADJUSTMENT PROCESS
At the end of a financial period, many balances listed in the trial
balance are in need of some adjustment. Common adjustments pertain
to prepaid expenses, plant assets, and accrued expenses. If the
proper adjusting entries are not made, financial statments will
be incorrect. It is not necessary to keep track of transactions
that affect revenues and expenses on a day to day basis.
Adjustments should be made at the end of each accounting period.

PREPAID EXPENSES - ADJUSTMENTS
At the end of an accounting period, adjustments must be made to
reflect the portion of the asset that has been consumed during the
period. The amount of asset or prepaid expense consumed is recorded
as a debit to the expense account, and a credit to the asset
account. Should an adjusting entry not be made, expenses, net
income, owner's equity and assets would all be overstated.

PLANT ASSETS - ADJUSTMENTS
Plant assets represent long-term tangible property owned by the
firm. Although it is often not visible, the usefulness of a plant
asset declines. This loss of usefulness is known as depreciation,
and it requires an adjusting entry periodically. The decline in
value requires a debit to Depreciation Expense account, and a
credit to Accumulated Depreciation (which is said to be a contra
asset account). The difference between the balances of the asset
and contra asset accounts is the book value of the asset. If the
adjusting entry is not made, assets, owner's equity, and net income
will be overstated, and expenses will be understated.

LIABILITIES - ADJUSTMENTS
While most expenses are prepaid, a few are paid after a service
has been performed. This is the case of wages and salaries. Since
the expense has not been paid but services have been received, an
accrued expense and a liability have taken place. The adjusting
entry requires a debit to an expense account and a credit to a
liability account. Failure to do so will result in net income
and owner's equity being overstated, and expenses and liabilities
being understated.

WORK SHEETS AND FINANCIAL STATEMENTS
The work sheet is a collection of important data that is used to
determine which adjusting entries must be performed. It also
assists in the preparation of financial statements. The first step
of preparing a work sheet is the trial balance. Once a trial
balance proves (i.e. total debits equal total credits), adjusting
entries can be performed. To make certain all debits and credits
still prove after all adjusting entries, an adjusted trial balance
is created. Once the adjusted trial balance proves, if is
separated into an income statement and a balance sheet. All
columns of the work sheet should have equal balances for debits
and credits.

PREPARING FINANCIAL STATEMENTS
The work sheet is used in the preparation of the financial
statements. The results of the income statement (net profit or
loss) are transferred to the statement of owner's equity. If
additional funds have been invested or withdrawn over the period,
such changes are recorded to the statement of owner's equity.
The owner's equity account in the balance sheet is transferred
from the statement of owner's equity. All other balances of the
balance sheet are transferred from the work sheet balance sheet
columns.

JOURNALIZING & POSTING CLOSING ENTRIES
After the financial statements are completed, all adjusting entries
are recorded in the journal and posted to the ledger so that all
financial statements are in agreement. It is necessary to close all
temporary accounts and record the net change to the owner's equity
account. This is accomplished by journalizing and posting closing
entries for all temporary accounts. An Income Summary account is
used to summarize revenue and expense accounts, and establishing
the net profit or loss for the period. In addition, any transaction
that increases or decreases capital should also be posted to the
appropriate capital account.

PROCEDURES TO CLOSE TEMPORARY ACCOUNTS
1)- Debit all revenue accounts, and credit Income Summary.
2)- Credit all expense accounts, and debit Income Summary.
3)- Add debit and credit columns of Income Summary. If the credit
balance exceeds the debit balance, a profit has been realized.
4)- Results of the Income Summary should be posted to a capital
account (Owner's or Shareholders equity).
5)- If there is activity in the Drawing or Dividend accounts, it is
necessary to credit those acounts and debit a capital account.

THE ACCOUNTING CYCLE
The accounting cycle begins with the analysis of all transactions
and recording them in the journal. Once all transactions have
been recorded in the journal, they are posted to the ledger and a
trial balance is drawn. The trial balance, adjusting entries, and
any additional information for the financial statements are
recorded in the work sheet. After the completion of the work
sheet, the financial statements are finalized. All adjusting and
closing entries are then journalized and posted to the ledger. To
ensure all entries were correctly made, a post-closing trial
balance is prepared to show the equality of debits and credits,
as well to confirm Assets, Liabilities, and Capital accounts with
proper open balances.

Review Quiz

Assignments

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