BTT1O - ESL - MS Word - Links

Here is the information that you need in one place:

1. My Favourite Website
2. Website Review
3. Rubric (Marking Scheme)

BAT4M - Closing Entries

Closing entries are entries made at the end of a fiscal period to close temporary accounts (like expenses and revenues) into the owner/shareholder equity account.

Learning Goals

By the end of this activity you will be able to:

• Understand the need for closing entries at the end of the fiscal period
• Describe the four steps in the process of closing the accounts at the end of the fiscal period
• Identify temporary and permanent accounts.

Success Criteria

I will know I am successful when:

• I can record the journal entries to close temporary accounts
• I can explain why closing entries are necessary.

Key Terms

• Temporary Accounts: Accounts that must be closed (balance converted to 0) at the end of a fiscal period. Examples: Revenues, Expenses, Drawings.
• Permanent Accounts: Accounts that can carry a balance from period to period. Examples: Assets, Liabilities, Capital.
• Income Summary (or Revenue and Expense Summary): A temporary account used to close the revenues and expenses and quickly show whether the company earned or loss money in the period. It is closed to the Capital account.

Process

1. At the end of a fiscal period (month, quarter or year), temporary accounts need to be "emptied" with a closing entry that reduces the account balance to zero.
2. Revenue and Expenses need to be recognized and recorded for the time period when incurred. Drawings must be closed as well.
3. Close the temporary accounts into an account called "Income Summary" or "Revenue and Expense Summary". Follow this order:
   1. Close all the revenues (a debit entry in the revenue account that matches with a credit entry in the Income Summary). For example, in Service Fees, create a debit entry called "Closing Entry" for the account balance and a matching credit entry in Income Summary called or "To close revenue".
   2. Close all the expenses (a credit entry in the expense(s) account and a debit entry in Income Summary). You can close all the expenses with a compound entry (multiple credit entries for each expense account and one debit entry in Income Summary.
   3. Close the Income Summary into the Capital account (if the company earned income, use a debit entry in Income Summary and a credit entry in Capital to show an increase in value, if the company incurred a loss, use a credit entry in Income Summary and a debit entry in Capital to show a decrease in value).
   4. Close Drawings into Capital (credit Drawings the sum of all that was withdrawn by the owner in the fiscal period and debit Capital).
4. Remember to make entries in the General Journal and the General Ledger.

Example

Activity

• Raptors Accounting
• On the last day of the month, the accountant may have to journalize transactions, make adjusting entries and complete the closing entries.

BTT1O - ESL - Don't Trust Every Website

This video of a wolf in the Athlete's Village at the Sochi Olympics caused a commotion*.

Is this reliable?

* excitement or confusion. "The video caused a commotion since everyone was excited because they thought that a wild animal was inside the building."

BAT4M - Adjusting Entries, Continued

Textbook

Be familiar with these parts of the textbook that match what we will cover during the next few classes:

• Adjusting Entries: page 156
• Closing Entries: page 206
• Reversing Entries: page 231

Last Class

Here are the solutions from last class's problem.

Reminder

This spreadsheet compares the difference between declining balance and straight-line amortization.

Adjusting Entries

Detailed Definition

Accrual basis accounting means that a business will recognize revenue that has been earned, but not yet received, and claim expenses incurred, but not yet paid. The accounting term “accrued expense” means an expense which has been incurred during the accounting period but has not been paid or recorded.

Terminology

• Accrued revenues are revenues that have been earned in this year but the customer will not be invoiced for payment until the next year. A temporary current asset is created when the adjusting entry is recorded.
• Accrued expenses are expenses that have been incurred but the invoice will not be received until the next year. A temporary current liability is created when the adjusting entry is recorded.

Process

1. Calculate the amount of the revenue earned or expense incurred from the last time money was paid/received up to the year-end date.
2. Make the adjusting entry to record the revenue or expense.

More Uses

Adjusting Entry	Account Debited	Account Credited
Recording salaries for one month that will not be paid until later.	Salaries Expense	Wages/Salaries Payable
Paying salaries that were earned last month but not paid until now.	Wages/Salaries Payable	Bank
Recording interest revenue that was earned during a time period but will not be paid until later.	Accrued Interest	Interest Revenue
Receiving payment of interest that was earned in an earlier time period.	Bank	Accrued Interest
Recording depreciation of a fixed asset.	Amortization/Depreciation Expense	Accumulated Amortization/Depreciation
Writing off bad (uncollectible) debts.	Bad Debt Expense	Accounts Receivable
Recording the insurance expense for a time period.	Insurance Expense	Prepaid Insurance
Recording revenue that was paid in advance.	Bank	Unearned Revenue
Recording the consumption of office supplies.	Supplies Expense	Office Supplies

Practice Exercise

C.I.S. Company

• Instructions
• Worksheet

Resources

Accrued Revenues and Expenses

Depreciation

BTT1O - Google Tips

In class, we will discuss some search tips to help get the information that you need when you are researching. Here are some graphic organizers to help remind you.

BTT1O - Microsoft Excel Research Assignment

Assessment of Learning

1) Learning Goals

• Use Google and Internet search techniques to research a topic
• Display the information coherently using Microsoft Excel
• Make informed statements about the data, supported by online research

2) Success Criteria

I will know that I am successful when:

• I research a topic of my choice and find interesting facts and figures
• I display the data in Excel in a way that highlights key points
• I summarize my findings in writing
• I include complete formatting (M.S. Excel and Works Cited List)

3) Expectations

Students will demonstrate the following expectations during the assessment:

• Productivity Software
  • use spreadsheet software to perform a variety of tasks
• Digital Literacy
  • apply effective techniques when conducting electronic research

4) Components

Each assignment will include the following components:

• A table of data (5x10)
• A line chart showing changes over time
• Two charts showing a snapshot of data at a specific time
• A paragraph summarizing the data and its significance
• A list of citations

5) Deadline

Submit in the Drop-Off Box by Wednesday March 5th

6) Supporting Documents

• Instructions
• Example Assignment
• Rubric

BAT4M - Cash Flow Statement Make-Up

For students who want to make-up the Cash Flow Statement assignment only.

1. Visit Yahoo Finance (Link: http://finance.yahoo.com/) and select the company of your choice.
2. Look at the Cash Flow statement (side menu, bottom left, under Financial Statements).
3. Summarize the cash flow statement and how it has changed in recent years (one paragraph).
4. Research the company: why has the cash flow changed (one paragraph).
5. Compare and contrast the statement with a competitor (one paragraph).
6. Due: Monday March 3rd.

You can use point-form/list style if you want. Quality is more important than quantity.

BTT1O - Tuesday's Class

Typing

Print out your progress reports

MS Excel

Demonstration

Individual Work

1. Tables
2. Charts
3. Formulas: Click here for help with data entry

BTT1O - ESL - Microsoft Word Assessment

Deadline

Please submit all three Micrsoft Word documents to the drop-off box by Friday February 27th.

Rubric

Click here for the rubric.

Checklist

You will be evaluated on these three items:

1. Internet Safety Terms Tables
2. “My Favourite Website”
3. Review of Website Reliability

BAT4M - Adjusting Entries

Introduction

Adjusting entries are part of the Accounting Cycle and consist of entries made at the end of fiscal period as part of the Time Period Concept and to better match expenses and revenues.

Learning Goals

• Explain why adjusting entries are necessary
• Analyze information and decide whether an adjusting entry is needed
• Record adjusting entries for prepaid expenses and unearned revenues in a general journal

Uses of Adjusting Entries

• Match unearned revenue and prepaid expenses to the time period that the transaction occurred
• Account for the use of supplies and depreciation in each period
• Divide items that might have been paid in a lump sum into smaller periods (like rent and insurance)

Practice Activity

We will do some of this activity together in class and you will do some on your own. Click here.

Additional Resources

Prepaid Expesnses

Unearned Revenue

Amortization and Depreciation Entries