Accounting Principles ةبساحمل ا ئدابم: Thirteenth Edition

Accounting Principles ‫مبادئا لمحاسبة‬
Thirteenth Edition
Weygandt Kimmel Kieso
Chapter 4
Completing the Accounting Cycle
‫استكمال دورة المحاسبة‬
Prepared by
Coby Harmon
University of California, Santa Barbara
Westmont College
Chapter Outline‫مخطط الفصل‬
Learning Objectives ‫أهداف التعلم‬
LO 1 Prepare a worksheet.‫ تحضير ورقة عمل‬.
LO 2 Prepare closing entries and a post-closing trial balance.
‫غالق‬
. ‫ قم بإعداد إدخاالت اإلغالق وميزان المراجعة بعد اإل‬LO 2
LO 3 Explain the steps in the accounting cycle and how to
prepare correcting entries.
.‫ اشرح خطوات الدورة المحاسبية وكيفية إعداد إدخاالت التصحيح‬LO 3
LO 4 Identify the sections of a classified balance sheet.
.‫ تحديد أقسام الميزانية العمومية المصنفة‬LO 4
Copyright ©2018 John Wiley & Son, Inc. 2

The Worksheet‫ورقة العمل‬
• Multiple-column form used in preparing financial statements
‫نموذج متعدد األعمدة يستخدم في إعداد البيانات المالية‬
• Not a permanent accounting record ‫ليس سجالمحاسبيا دائما‬
• May be a computerized worksheet ‫قد تكونورقة عملمحوسبة‬
• Prepared using a five step process‫أعدت باستخدام عملية منخمس خطوات‬
• Use of worksheet is optional‫استخدام ورقة العمل اختياري‬
LO 1 Copyright ©2018 John Wiley & Son, Inc. 3

Pioneer Advertising
Worksheet ILLUSTRATION 4.1
For the Month Ended October 31, 2020 Form for a worksheet
Adjusted Income
Trial Balance Adjustments Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 15,200 15,200 15,200
Supplies 2,500 (a) 1,500 1,000 1,000
Prepaid Insurance 600 (b) 50 550 550
Equipment 5,000 5,000 5,000
Notes Payable 5,000 5,000 5,000
Accounts Payable 2,500 2,500 2,500
Unearned Service Revenue 1,200 (d) 400 800 800
Owner's Capital 10,000 10,000 10,000
Owner's Drawings 500 500 500
Service Revenue 10,000 (d) 400 10,600 10,600
(e) 200
Salaries and Wages Expense 4,000 (g) 1,200 5,200 5,200
Rent Expense 900 900 900
Totals 28,700 28,700
Supplies Expense (a) 1,500 1,500
Insurance Expense Step 1 (b) Step 50 2 Step
50 3 1,500
50 Step
4

Accumulated Depreciation Prepare
a Enter
(c) 40 Enter
40 Extend adjusted 40
Depreciation Expense (c) 40 40 40
Accounts Receivable trial balance
(e)adjustment
200 adjusted
200 balances
to appropriate
200
Interest Expense
on the (f) 50
data. balances.
50 50
statement columns.
Interest Payable (f) 50 50 50
Salaries and Wages Payable worksheet.
(g) 1,200 1,200 Step 5 1,200
Totals 3,440 3,440 30,190 30,190 7,740 10,600 22,450 19,590
Net Income 2,860Total the statement 2,860
Totals 10,600 columns,
10,600 22,450 22,450
compute net income
(or net loss), and
complete worksheet.

Pioneer Advertising
Step 1 Worksheet
For the Month Ended October 31, 2020
ILLUSTRATION 4.2
Preparing a trail balance
Adjusted Income
Cash 15,200 15,200 15,200
Supplies 2,500 (a) 1,500 1,000 1,000
Equipment 5,000 5,000 5,000
Notes Payable 5,000 5,000 5,000
Owner's Capital 10,000 10,000 10,000
(e) 200
Totals 28,700 28,700
Supplies Expense (a) 1,500 1,500 1,500
Insurance Expense (b) 50 50 50
Accumulated Depreciation (c) 40 40 40
Accounts Receivable (e) 200 200 200
Interest Expense
Interest Payable

(f)

50
(f)
Trial balance amounts come
50
50
50
50

50

Salaries and Wages Payable

Totals

3,440
directly from ledger accounts.
(g) 1,200
3,440 30,190
1,200
30,190 7,740

10,600

22,450
1,200
19,590
Net Income 2,860 2,860
Include all accounts
Totals 10,600 10,600 22,450 22,450
with balances.

Step 2 Enter Adjustments
The adjustments are the same as in Illustration 3.23.
a. Pioneer debits an additional account, Supplies Expense, $1,500 for the cost
of supplies used, and credits Supplies $1,500.
b. Pioneer debits an additional account, Insurance Expense, $50 for the
insurance that has expired, and credits Prepaid Insurance $50.
c. The company needs two additional depreciation accounts. It debits
Depreciation Expense $40 for the month’s depreciation, and credits
Accumulated Depreciation—Equipment $40.
d. Pioneer debits Unearned Service Revenue $400 for services performed, and
credits Service Revenue $400.
e. Pioneer debits an additional account, Accounts Receivable, $200 for services
performed but not billed, and credits Service Revenue $200.
f. The company needs two additional accounts relating to interest. It debits
Interest Expense $50 for accrued interest, and credits Interest Payable $50.
g. Pioneer debits Salaries and Wages Expense $1,200 for accrued salaries, and
credits an additional account, Salaries and Wages Payable, $1,200.
Pioneer Advertising
Step 2 Worksheet
ILLUSTRATION 4.3
Entering the adjustments
Adjusted Income
Cash 15,200 15,200 15,200
Supplies 2,500 (a) 1,500 1,000 1,000
Equipment 5,000 5,000 5,000
Notes Payable 5,000 Adjustments
5,000 Key: 5,000
Owner's Capital 10,000
(a) Supplies Used
10,000 10,000
Owner's Drawings 500 500 (b) Insurance
Expired 500
(e) 200 (c) Depreciation
Expensed

Rent Expense 900 900 (d) Service 900Revenue Recognized

Totals 28,700 28,700
Supplies Expense (a) 1,500 1,500 (e) Service 1,500Revenue Accrued

Accumulated Depreciation (c) 40 (f) 40 Interest Accrued
40
Accounts Receivable (e) 200 200 (g) Salaries
Accrued
200
Interest Expense (f) 50 50 50
Salaries and Wages Payable (g) 1,200 Enter
1,200 adjustment amounts,
total
1,200
Totals 3,440 3,440 30,190 30,190 7,740 10,600 22,450 19,590
Net Income adjustments
2,860 columns, and check 2,860
Totals 10,600 10,600 22,450 22,450
for equality.
Add additional accounts as needed.

Pioneer Advertising
Step 3 Worksheet
ILLUSTRATION 4.4
Entering adjusted balances
Adjusted Income
Cash 15,200 15,200 15,200
Supplies 2,500 (a) 1,500 1,000 1,000
Equipment 5,000 5,000 5,000
Notes Payable 5,000 5,000 5,000
Owner's Capital 10,000 10,000 10,000
(e) 200
Totals 28,700 28,700
Salaries and Wages Payable (g) 1,200 1,200 1,200
Totals 3,440 3,440 30,190 30,190 7,740 10,600 22,450 19,590
Totals 10,600 10,600 22,450 22,450
Check equality of adjusted trial balance columns.

Pioneer Advertising
Step 4 Worksheet
ILLUSTRATION 4.5
Extending adjusted trial balance amounts
Adjusted Income
Cash 15,200 15,200 15,200
Supplies 2,500 (a) 1,500 1,000 1,000
Equipment 5,000 5,000 5,000
Notes Payable 5,000 5,000 5,000
Owner's Capital 10,000 10,000 10,000
(e) 200
Totals 28,700 28,700
Totals 3,440 3,440 30,190 30,190 7,740 10,600 22,450 19,590
Totals 10,600 10,600 22,450 22,450
Extend adjusted trial balance amounts to appropriate financial statement columns.

Pioneer Advertising
Step 5 Worksheet
ILLUSTRATION 4.6
Compute net income or net loss
Adjusted Income
Cash 15,200 15,200 15,200
Supplies 2,500 (a) 1,500 1,000 1,000
Equipment 5,000 5,000 5,000
Notes Payable 5,000 5,000 5,000
Owner's Capital 10,000 10,000 10,000
(e) 200
Totals 28,700 28,700
Totals 3,440 3,440 30,190 30,190 7,740 10,600 22,450 19,590
Totals 10,600 10,600 22,450 22,450
Compute net income or net loss.

Steps in Preparing a Worksheet‫خطوات تحضير ورقة العمل‬
Net income is shown on a worksheet in the: ‫فيورقة‬ ‫يظهر صافي الدخل‬

‫عمل في‬:
a. income statement debit column only.

‫عمود الخصم في بيان الدخل فقط‬.
B. balance sheet debit column only. ‫الميزانية‬ ‫عمود الخصم في‬

‫ العمومية فقط‬.
C. income statement credit column and balance sheet

debit column. ‫عمود ائتمان بيان الدخلوعمود الخصم في الميزانية العمومية‬.
D. income statement debit column and balance sheet
credit column. ‫عمود الخصم في بيان الدخلوعمود ائتمان الميزانية العمومية‬.
Preparing Financial Statements from a Worksheet
‫إعداد البيانات المالية منورقة العمل‬
• Income statement is prepared from the income statement

columns‫يتم إعداد بيان الدخلمن أعمدة بيان الدخل‬
• Balance sheet and owner’s equity statement are prepared from
the balance sheet columns
‫يتم إعداد الميزانية العمومية وبيان حقوق الملكية للمالك من أعمدة الميزانية العمومية‬
• Companies can prepare financial statements before they
journalize and post adjusting entries
‫يمكن للشركات إعداد البيانات المالية قبل تدوينها ونشر إدخاالت التعديل‬

Preparing Statements from a Worksheet
‫تحضير البياناتمنورقة العمل‬
Pioneer Advertising
Income Statement
Revenues
Service revenue $10,600
Expenses
Salaries and wages expense $5,200
Supplies expense 1,500
Rent expense 900
Insurance expense 50
Interest expense 50
Depreciation expense 40
Total expenses 7,740
Net income $2,860
ILLUSTRATION 4.7
LO 1 Financial statements from a worksheet Copyright ©2018 John Wiley & Son, Inc. 13
Preparing Statements from a Worksheet
Pioneer Advertising
Owner’s Equity Statement
Owner’s capital, October 1 $ 0
Add: Investments $10,000
Net income 2,860 12,860
12,860
Less: Drawings 500
Owner’s capital, October 31 $12,360
ILLUSTRATION 4.7
Pioneer Advertising
Balance Sheet
October 31, 2020
Assets
Cash $15,200
Accounts receivable 200
Supplies 1,000
Prepaid insurance 550
Equipment $5,000
Less: Accumulated depreciation 40 4,960
Total assets $21,910
Liabilities and Owner’s Equity
Liabilities
Notes payable $5,000
Accounts payable 2,500
Interest payable 50
Unearned service revenue 800
Salaries and wages payable 1,200
Total liabilities $ 9,550
Owner’s equity
Owner’s capital 12,360
Total liabilities and owner’s equity $21,910
ILLUSTRATION 4.7
Preparing Adjusting Entries from a Worksheet
• Adjusting entries are prepared from the adjustments
columns of the worksheet
‫يتم إعداد إدخاالت التعديل من أعمدة التعديالت في ورقة العمل‬
• Journalizing and posting of adjusting entries follows
the preparation of financial statements when a
worksheet is used
‫يتبع تسجيل دفتر اليومية وترحيل إدخاالت التعديل إعداد البيانات المالية عند استخدام‬
‫ورقة العمل‬

DO IT! 1 Worksheet‫ورقة عمل‬
Susan Elbe is preparing a worksheet. Explain to Susan how she
should extend the following adjusted trial balance accounts to
the financial statement columns of the worksheet.
.‫اشرح لسوزان كيف ينبغي لها أن تمد حسابات ميزان المراجعة المعدلة التالية إلى أعمدة البيانات المالية في ورقة العمل‬
Cash Balance sheet (debit)

Owner’s Drawings Balance sheet (debit)
Accumulated Depreciation Balance sheet (credit)
Service Revenue Income statement (credit)
Accounts Payable Balance sheet (credit)
Salaries and Wages Expense Income statement (debit)
Closing the Books‫إغالق كتب‬
At the end of the accounting period, the company
makes the accounts ready for the next period.
.‫ تجعل الشركة الحسابات جاهزة للفترة التالية‬، ‫في نهاية الفترة المحاسبية‬
Trial Adjusting
Analyze Journalize Post
Balance Entries
Adjusted Post-Closing
Financial Closing
Trial Trial
Balance Statements Entries
Balance

Closing the Books‫إغالق كتب‬ ILLUSTRATION 4.8
Temporary versus permanent
accounts
TEMPORARY‫مـؤقت‬ PERMANENT ‫ادـئـم‬

These accounts are closed These accounts are not closed
‫هذه الحسابات مغلقة‬ ‫هذه الحسابات ليست مغلقة‬
All revenue accounts All asset accounts
All expense accounts All liability accounts
Owner's drawing account Owner's capital account

Preparing Closing Entries ‫تحضير المداخل الختامية‬
Closing entries formally recognize in the ledger the transfer of:
‫تتعرف إدخاالت اإلغالق رسميًا في دفتر األستاذ على نقل‬:
• Net income (or net loss) to owner’s capital
‫صافي الدخل (أو صافي الخسارة) لرأس مال المالك‬
• Owner’s drawings to owner’s capital ‫المالك‬ ‫رسومات المالك لرأس مال‬
Produce a zero balance in each temporary account.

‫قم بإنتاج رصيد صفري في كل حساب مؤقت‬.
Companies generally journalize and post closing entries only at end
of the annual accounting period.
‫تقوم الشركات عمو ًما بتسجيل ونشر قيود اإلغالق فقط في نهاية الفترة المحاسبية السنوية‬.

Preparing Closing Entries ‫تحضير المداخل الختامية‬ ILLUSTRATION 4.9
Diagram of closing process—
proprietorship
(Individual) Income (Individual)

Expenses Summary Revenues
2 1
3
Key:
1. Close Revenues to Income Owner’s Owner’s
Summary. Drawings Capital
2. Close Expenses to Income
Summary.
4
3. Close Income Summary to Owner’s
Capital.
4. Close Owner’s Drawings to
Owner’s Capital.

ILLUSTRATION 4.10
Closing Entries Illustrated ‫يتضح المداخل الختامية‬ Closing entries journalized
GENERAL JOURNAL Page J3

Date Account Titles and Explanations Ref. Debit Credit
2020
Oct. 31 Service Revenue 400 10,600
Income Summary 350 10,600
(To close revenue account)
31 Income Summary 350 7,740
Supplies Expense 631 1,500
Depreciation Expense 711 40
Insurance Expense 722 50
Salaries and Wages Expense 726 5,200
Rent Expense 729 900
Interest Expense 729 50
(To close expense accounts)

ILLUSTRATION 4.10
Closing Entries Illustrated‫يتضح المداخل الختامية‬ Closing entries journalized

2020
Oct. 31 Income Summary 350 2,860
Owner’s Capital 301 2,860
(To close net income to capital)
31 Owner’s Capital 301 500
Owner’s Drawings 306 500
(To close drawings to capital)

Posting Closing
Entries
‫إرسال إدخاالت ختامية‬
ILLUSTRATION 4.11
Copyright ©2018 John

LO 2 24
Wiley & Son, Inc.
Pioneer Advertising
Post-Closing Trial Balance
October 31, 2020
Debit Credit
Cash $15,200
Accounts Receivable 200
Supplies 1,000
Prepaid Insurance 550
Equipment 5,000
Accumulated Depreciation $ 40
Notes Payable 5,000
Accounts Payable 2,500
Unearned Service Revenue 800
Salaries and Wages Payable 1,200
Interest Payable 50
Owner’s Capital 12,360
$21,950 $21,950
ILLUSTRATION 4.12
DO IT! 2 Closing Entries‫غلق المداخل‬
Hancock Company has the following balances in selected accounts
of its adjusted trial balance.
Accounts Payable $27,000 Owner’s Drawings $15,000
Service Revenue 98,000 Owner’s Capital 42,000
Rent Expense 22,000 Accounts Receivable 38,000
Salaries and Wages Supplies Expense 7,000
Expense 51,000
Prepare the closing entries at December 31.
Service Revenue 98,000
Income Summary 98,000

DO IT! 2 Closing Entries
Expense 51,000
Salaries and Wages Expense 51,000
Rent Expense 22,000
Supplies Expense 7,000

DO IT! 2 Closing Entries
Expense 51,000
Owner’s Drawings 15,000

The Accounting Cycle ‫دورـة لاـمحـاسبة‬
1. Analyze business transactions
9. Prepare a post-closing trial

2. Journalize the transactions
balance
8. Journalize ‫المحاسبة‬
and post‫دورة‬
closing
3. Post to ledger accounts
entries
7. Prepare financial
4. Prepare a trial balance
statements
6. Prepare an adjusted trial 5. Journalize and post

balance adjusting entries

Analyze Business Transactions .1
‫تحليل المعامالت التجارية‬
Assets Liabilities Owner’s Equity

Accounts Notes Unearned Owner's Owner's
Date Cash +Equipment = Payable + Payable + Revenue + Capital - Drawings +Revenue - Expense
1 +$10,000 +$10,000
1 +$5,000 +$5,000
2 +1,200 +$1,200
3 -1,200 -$1,200
4 +250 -$250
Partial Schedule

2. Journalize the Transactions‫تدوين المعامالت‬
Date Explanation Ref. Debit Credit
2020
Oct. 1 Cash 101 10,000
Owners’ Capital 301 10,000
1 Equipment 157 5,000
Notes Payable 200 5,000
2 Cash 101 1,200
Unearned Revenue 209 1,200
3 Rent Expense 729 900
Cash 101 900
LO 3 ILLUSTRATION 2.29 Copyright ©2018 John Wiley & Son, Inc. 31

3. Post to the Ledger Accounts ‫األستاذ‬ ‫أضف إلى حساباتدفتر‬
On October 1, C. R. Byrd invests $10,000 cash in an advertising

Transaction
company called Pioneer Advertising.
Date Titles Ref. Debit Credit
Journal Oct. 1 Cash 101 10,000
Entry
Owner's Capital 301 10,000
Cash 101 Owner's Capital 301

Posting
Oct. 1 10,000 Oct. 1 10,000


Pioneer Advertising
Trial Balance
October 31, 2020
Debit Credit
Cash $15,200
Supplies 2,500
4. Prepare a Prepaid Insurance 600
Trial Balance Equipment
Notes Payable
5,000
$ 5,000
‫إعداد ميزان المراجعة‬ Unearned Service Revenue 1,200
Owner’s Drawings 500
Rent Expense 900
$28,700 $28,700

5. Journalize and Post Adjusting Entries
‫يومياتوتعديل المدخالت‬
Transaction Pioneer used supplies costing $1,500.
Basic The expense Supplies Expense is increased $1,500, and the asset
Analysis Supplies is decreased $1,500.
Date Titles Ref. Debit Credit
Journal Oct. 31 Supplies Expense 1,500
Entry
Supplies 1,500
Supplies Supplies Expense

Posting
Oct. 5 2,500 Oct. 31 1,500 Oct. 31 1,500
Oct. 31 1,000 Oct. 31 1,500

Pioneer Advertising
Adjusted Trial Balance
October 31, 2020
6. Prepare an Cash
Debit
$15,200
Credit
Adjusted Trail Accounts Receivable

Supplies
200
1,000
Balance Prepaid Insurance
Equipment
550
5,000
Accumulated Depreciation—Equipment $ 40
Notes Payable 5,000
‫قم بإعداد ميزان‬ Accounts Payable
Interest Payable
2,500
50
‫المراجعة المعدل‬ Unearned Revenue
800
1,200
Owner’s Drawings 500
Supplies Expense 1,500
Rent Expense 900
Insurance Expense 50
Interest Expense 50
ILLUSTRATION 3.25 Depreciation Expense 40
$30,190 $30,190

7. Prepare Financial Statements 7. ‫إعداد البيانات المالية‬ Partial
Statements
Pioneer Advertising
Income Statement
Revenues
Service revenue $10,600
Pioneer Advertising
Owner’s Equity Statement
Owner’s capital, October 1 $ 0
Pioneer Advertising
Balance Sheet
October 31, 2020
Assets
Cash $15,200

8. Journalize and Post Closing Entries‫تدوين وإغالق المداخل‬
2020
Oct. 31 Service Revenue 400 10,600
Income Summary 350 10,600
(To close revenue account)
31 Income Summary 350 7,740
Supplies Expense 631 1,500
Depreciation Expense 711 40
Partial Insurance Expense 722 50
Schedule Salaries and Wages Expense 726 5,200
Rent Expense 729 900
Interest Expense 729 50
(To close expense accounts)

9. Prepare a Pioneer Advertising
Post-Closing October 31, 2020
Trial Balance Debit Credit
Cash $15,200
9.‫قم بإعداد ميزان‬ Supplies 1,000
‫المراجعة بعد اإلغالق‬ Prepaid Insurance 550
Equipment 5,000
Accumulated Depreciation $ 40
Notes Payable 5,000
Unearned Service Revenue 800
Salaries and Wages Payable 1,200
Interest Payable 50
ILLUSTRATION 4.12
$21,950 $21,950

Correcting Entries—An Avoidable Step
‫ خطوة يمكن تجنبها‬-‫تصحيح اإلدخاالت‬
• Unnecessary if accounting records are free of errors
‫غير ضروري إذا كانت السجالت المحاسبية خالية من األخطاء‬
• Made whenever an error is discovered
‫يحدث كلما تم اكتشاف خطأ‬
• Must be posted before closing entries
‫يجب نشرها قبل إغالق اإلدخاالت‬
Instead of preparing a correcting entry, it is possible to reverse the
incorrect entry and then prepare the correct entry.
.‫ من الممكن عكس اإلدخال غير الصحيح ثم تحضير اإلدخال الصحيح‬، ‫بدالً من إعداد إدخال تصحيح‬

Correcting Entries—An Avoidable Step ‫ خطوة يمكن تجنبها‬-‫تصحيح اإلدخاالت‬
Case 1: On May 10, Mercato Co. journalized and posted a $50 cash collection on account from a
customer as a debit to Cash $50 and a credit to Service Revenue $50. The company discovered the
error on May 20, when the customer paid the remaining balance in full.
‫ سجلت شركة‬، ‫ مايو‬10 ‫ في‬:1 ‫ الحالة‬Mercato ‫ دوالرًا أمريكيًا على الحساب من‬50 ‫دفتر يوميات ونشرت مجموعة نقدية بقيمة‬
، ‫ مايو‬20 ‫ اكتشفت الشركة الخطأ في‬.‫ دوالرًا أمريكيًا‬50 ‫ دوالرًا أمريكيًا وائتمانًا إليرادات الخدمة‬50 ‫العميل كخصم إلى نقد بقيمة‬
‫عندما دفع العميل الرصيد المتبقي بالكامل‬.
Incorrect Cash 50
entry
Service Revenue 50
Correct Cash 50
entry
Correcting Service Revenue 50
entry
Correcting Entries—An Avoidable Step ‫ خطوة يمكن تجنبها‬-‫تصحيح اإلدخاالت‬
Case 2: On May 10, 18, Mercato purchased on account equipment

costing $450. The transaction was journalized and posted as a debit
to Equipment $45 and a credit to Accounts Payable $45. The error
was discovered on June 3,
Incorrect Equipment45
entry Accounts Payable 45
Correct Equipment450
Correcting Equipment405
DO IT! 3 Correcting Entries‫تصحيح اإلدخاالت‬
Sanchez Company discovered the following errors made in January
2020. ‫ اكتشفت شركة‬Sanchez 2020 ‫ األخطاء التالية التيحدثت في يناير‬.
1. A payment of Salaries and Wages Expense of $600 was debited to
Supplies and credited to Cash, both for $600.
.‫ دوالر‬600 ‫ وكالهما‬، ‫ دوالر أمريكي إلى اللوازم وقيدت في رصيد النقدية‬600 ‫تم خصم دفعة من مصروفات الرواتب واألجور بقيمة‬
2. A collection of $3,000 from a client on account was debited to Cash

$200 and credited to Service Revenue $200.
.‫ دوالر أمريكي‬200 ‫ دوالر أمريكي وإضافته إلى إيرادات الخدمة‬200 ‫ دوالر أمريكي من العميل على الحساب من مبلغ‬3000 ‫تم خصم مبلغ‬
3. The purchase of supplies on account for $860 was debited to

Supplies $680 and credited to Accounts Payable $680.
.‫ دوالرًا‬680 ‫ دوال ًرا وإضافتها إلى الحسابات الدائنة‬680 ‫ دوال ًرا من اللوازم‬860 ‫تم خصم شراء اإلمدادات على الحساب بمبلغ‬
Correct the errors without reversing the incorrect entry.

.‫صحح األخطاء دون عكس اإلدخال غير الصحيح‬
DO IT! 3 Correcting Entries‫اإلدخاالت‬ ‫تصحيح‬
1. A payment of Salaries and Wages Expense of $600 was debited
to Supplies and credited to Cash, both for $600.
Salaries and Wages Expense 600
Supplies 600
2. A collection of $3,000 from a client on account was debited to
Cash $200 and credited to Service Revenue $200.
Service Revenue 200
Cash 2,800
Accounts Receivable 3,000

DO IT! 3 Correcting Entries
3. The purchase of supplies on account for $860 was debited to
Supplies $680 and credited to Accounts Payable $680.
Supplies ($860 - $680) 180
Accounts Payable 180

Classified Balance Sheet ‫الميزانية العمومية المصنفة‬
• Presents a snapshot at a point in time‫يقدم لقطة فيوقتمعين‬
• To improve understanding, companies group similar assets and
similar liabilities together
‫ تقوم الشركات بتجميع األصول المتشابهة والمطلوبات المتشابهة معًا‬، ‫لتحسين الفهم‬
Assets Liabilities and Owner's Equity

Current assets Current liabilities
Long-term investments Long-term liabilities
Property, plant, and equipment Owner's (Stockholders') equity
Intangible assets
LO 4 ILLUSTRATION 4.20 John Wiley & Son, Inc.

Copyright ©2018 45
Standard balance sheet classifications
Franklin Company
Balance Sheet
October 31, 2020
Assets
Current assets
Cash $ 6,600
Debt investments 2,000
Accounts receivable 7,000
Notes receivable 1,000
Inventory 3,000
Supplies 2,100
Prepaid insurance 400
Total current assets $22,100
Long-term investments
Stock investments 5,200
Investment in real estate 2,000 7,200
Property, plant, and equipment
Land 10,000
Equipment $24,000
Less: Accumulated depreciation– equipment 5,000 19,000 29,000
Intangible assets
Patents 3,100
Total assets $61,400

Classified balance sheet
Franklin Company
Balance Sheet
October 31, 2020
Liabilities and Owner’s Equity
Current liabilities
Notes payable $ 11,000
Unearned service revenue 900
Interest payable 450
Total current liabilities $16,050
Long-term liabilities
Mortgage payable 10,000
Notes payable 1,300
Total long-term liabilities 11,300
Total liabilities 27,350
Owner’s equity
Owner’s capital 34,050
Total liabilities and owner’s equity $61,400

Classified balance sheet
Current Assets ‫االصول المتداولة‬
• Assets that a company expects to convert to cash or use up
within one year or the operating cycle, whichever is longer
‫ أيهما‬، ‫األصول التي تتوقع الشركة تحويلها إلى نقد أو استخدامها خالل عام واحد أو خالل دورة التشغيل‬
‫أطول‬
• Operating cycle is the average time that it takes to

‫دورة التشغيل هي متوسط الوقت الذي تستغرقه‬
 purchase inventory,‫ شراء المخزون‬،
 sell it on account, and ‫ و‬،‫بيعها على الحساب‬
 collect cash from customers ‫تحصيل النقود من العمالء‬

Current Assets ‫ا الصول المتداولة‬ ILLUSTRATION 4.22
SOUTHWEST AIRLINES CO.

Balance Sheet (partial)
(in millions)
Current assets
Cash and cash equivalents $ 1,390
Short-term investments 369
Inventories 181
Prepaid expenses and other current assets 420
Total current assets $4,456
Accounts usually listed in order liquidity.

Current Assets ‫االصول المتداولة‬
The correct order of presentation in a classified balance
sheet for the following current assets is:
‫الترتيب الصحيح للعرض في الميزانية العمومية المصنفة لألصول الحالية التالية‬
‫هو‬:
a. accounts receivable, cash, prepaid insurance,
inventory.
b. cash, inventory, accounts receivable, prepaid
insurance.
c. cash, accounts receivable, inventory, prepaid
insurance.
d. inventory, cash, accounts receivable, prepaid
LO 4
insurance. Copyright ©2018 John Wiley & Son, Inc. 50
Long-Term Investments ‫األجل‬ ‫استثماراتطويلة‬
• Investments in stocks and bonds of other companies
‫استثمارات في أسهم وسندات شركات أخرى‬
• Investments in long-term assets such as land or buildings that are not
currently being used in operating activities
‫االستثمارات في األصول طويلة األجل مثل األراضي أو المباني التي ال يتم استخدامها حاليًا في أنشطة‬
‫التشغيل‬
• Long-term notes receivable‫سندات القبضطويلة األجل‬
Alphabet Inc.
(in thousands)
Long-term investments
Investments in securities $ 90,266
LO 4 ILLUSTRATION
Copyright ©2018 John Wiley & Son,4.23
Inc. 51
Property, Plant, and Equipment‫الممتلكات واآلالت والمعدات‬
• Long useful lives ‫حياة طويلة مفيدة‬
• Currently used in operations‫تستخدم حاليا في العمليات‬
• Depreciation - allocating the cost of assets to a number of
years‫ تخصيص تكلفة األصول لعدد من السنوات‬-‫االستهالك‬
• Accumulated depreciation - total amount of depreciation
expensed thus far in the asset’s life
‫ إجمالي مبلغ االستهالك المصروف حتى اآلن في عمر األصل‬- ‫االستهالك المتراكم‬
• Sometimes called fixed assets or plant assets
‫تسمى أحيانًا األصول الثابتة أو األصول النباتية‬

Property, Plant, and Equipment‫الممتلكات واآلالت والمعدات‬
ILLUSTRATION 4.24
Tesla Motors, Inc.
(in thousands)
Property, plant, and equipment
Machinery, equipment and office furniture $322,394
Tooling 230,385
Leasehold improvements 94,763
Building and building improvements 67,707
Land 45,020
Computer equipment and software 42,073
Construction in progress 76,294
878,636
Less: Accumulated depreciation 140,142
Total $738,494
Intangible Assets ‫األصولغير الملموسة‬
• Long-lived assets that do not have physical substance
ILLUSTRATION 4.25
The Walt Disney Company
(in millions)
Intangible assets and goodwill
Character/franchise intangibles and copyrights $ 5,830
Other amortizable intangible assets 903
Accumulated amortization (1,204)
Net amortizable intangible assets 5,529
FCC licenses 667
Trademarks 1,218
Other indefinite lived intangible assets 20
7,434
Goodwill 27,881
$35,315
Patents and copyrights are ‫براءات االختراع وحقوق التأليف والنشر‬
a. Current assets ‫االصول المتداولة‬
b. Intangible assets ‫األصولغير الملموسة‬
c. Long-term investments‫استثماراتطويلة األجل‬
d. Property, plant, and equipment‫الممتلكات واآلالت والمعدات‬

Current Liabilities ‫المطلوبات المتداولة‬
• Obligations company is to pay within coming year or its operating cycle,
whichever is longer
‫تلتزم الشركة بالدفع خالل السنة القادمة أو خالل دورة تشغيلها أيهما أطول‬
• Usually list notes payable first, followed by accounts payable. Other items
follow in order of magnitude
‫ تتبع العناصر األخرى بالترتيب من حيث الحجم‬.‫ متبوعة بحسابات الدفع‬، ً‫عادةً ما يتم سرد األوراق المستحقة الدفع أوال‬
• Common examples are accounts payable, salaries and wages payable, notes
payable, interest payable, income taxes payable current maturities of long-
term obligations
‫ والفوائد‬، ‫ وأوراق الدفع‬، ‫ والرواتب واألجور المستحقة الدفع‬، ‫األمثلة الشائعة هي الحسابات الدائنة‬
‫ وتواريخ االستحقاق الحالية لاللتزامات طويلة األجل‬، ‫ وضرائب الدخل‬، ‫المستحقة الدفع‬
• Liquidity - ability to pay obligations expected to be due within the next year
‫ القدرة على سداد االلتزامات المتوقع أن تكون مستحقة خالل العام المقبل‬- ‫السيولة‬
Current Liabilities ‫المطلوبات المتداولة‬
ILLUSTRATION 4.26
Marcus Corporation
(in thousands)
Current liabilities
Notes payable $ 239
Current maturities of long-term debt 57,250
Other current liabilities 27,477
Income taxes payable 11.215
Total current liabilities $127,143

Long-Term Liabilities ‫مطلوباتطويلة األجل‬
• Obligations a company expects to pay after one year.
ILLUSTRATION 4.27
Nike, Inc.
(in millions)
Long-term liabilities
Bonds payable $ 1,106
Notes payable 51
Deferred income taxes and other 1,544
Total long-term liabilities $2,701

Which of the following is not a long-term liability?
‫أي مما يلي ال يعد مسؤولية طويلة األجل؟‬
a. Bonds payable ‫سندات الدفع‬
b. Current maturities of long-term obligations
‫آجال االستحقاق الحالية لاللتزامات طويلة األجل‬
c. Long-term notes payable ‫سنداتطويلة األجلمستحقة‬
‫الدفع‬
d. Mortgages payable ‫الرهون العقارية واجبة الدفع‬

Owner’s Equity ‫المالك األسهم‬
• Proprietorship - one capital account ‫ حسابرأس مالواحد‬- ‫ملكية‬
• Partnership - capital account for each partner
‫ حساب رأس المال لكل شريك‬- ‫الشراكة‬
• Corporation - Common Stock and Retained Earnings
‫ األسهم العادية واألرباح المحتجزة‬- ‫المؤسسة‬
ILLUSTRATION 4.28
Nordstrom, Inc.
(in thousands)
Stockholders’ equity
Common stock, 271,331 shares $ 685,934
Retained earnings 1,406,747
Total stockholders’ equity $2,092,681

DO IT! 4 Balance Sheet Classifications ‫تصنيفات الميزانية العمومية‬
Match each of the following to its proper balance sheet classification, shown below.
If the item would not appear on a balance sheet, use “NA.”
‫ إذا لم يظهر العنصر في‬.‫ كما هو موضح أدناه‬، ‫طاـبقـ كل ًا مما يلي مع التصنيف المناسب للميزانية العمومية‬
."NA" ‫ فاستخدم‬، ‫الميزانية العمومية‬
CL Salaries and wages payable LTI Stock investments (long-term)
NA Service revenue PPE Equipment
CL Interest payable PPE Accumulated depreciation
IA Goodwill NA Depreciation expense
CA Debt investments (short-term) OE Owner’s capital
LTL Mortgage payable (due in 3 years) CL Unearned service revenue
Current assets (CA) Current liabilities (CL)

Long-term investments (LTI) Long-term liabilities (LTL)
Property, plant, and equipment (PPE) Owner’s equity (OE)
Intangible assets (IA)
Appendix 4A Reversing Entries ‫عكس المداخل‬
It is often helpful to reverse some adjusting entries before
recording regular transactions of the next period
‫من المفيد غالبًا عكس بعض إدخاالت التعديل قبل تسجيل المعامالت المنتظمة للفترة التالية‬
Companies make a reversing entry at beginning of next accounting
period
‫تقوم الشركات بإجراء إدخال عكسي في بداية الفترة المحاسبية التالية‬
Each reversing entry is exact opposite of adjusting entry made in
previous period
‫كل دخول عكسي هو عكس تما ًما تعديل اإلدخال الذي تم إجراؤه في الفترة السابقة‬
Use of reversing entries does not change amounts reported in the
financial statements
LO 5 ‫البيانات المالية‬
Copyright ‫في‬ ‫المدرجة‬
©2018 ‫المبالغ‬
John Wiley & Son,‫تغيير‬
Inc. ‫ ال يؤدي استخدام عكس القيود إلى‬62
Reversing Entries Example‫عكس المدخالت مثال‬
We use the salaries expense transactions for Pioneer Advertising as
illustrated in Chapters 2, 3, and 4.
.4 ‫ و‬3 ‫ و‬2 ‫ كما هو موضح في الفصول‬Pioneer Advertising ‫نستخدم معامالت مصروفات الرواتب لشركة‬
1. October 26 (initial salary entry): Pioneer pays $4,000 of salaries

and wages earned between October 15 and October 26.
2. October 31 (adjusting entry): Salaries and wages earned
between October 29 and October 31 are $1,200. The company
will pay these in the November 9 payroll.
3. November 9 (subsequent salary entry): Salaries and wages paid
are $4,000. Of this amount, $1,200 applied to accrued salaries
and wages payable and $2,800 was earned between November
1 and November 9.
ILLUSTRATION 4A.1
With Reversing Entries
(per appendix)
Initial Salary Entry

Oct. 26 Same entry
Adjusting Entry
Oct. 31 Same entry
Closing Entry
Oct. 31 Same entry
Reversing Entry
Nov. 1 Salaries and Wages Payable 1,200
Subsequent Salary Entry

Nov. 9 Salaries and Wages Expense 4,000
Cash 4,000

ILLUSTRATION 4A.2
Postings with reversing
Salaries and Wages Expense entries
10/26 Paid 4,000 10/31 Closing 5,200

10/31 Adjusting 1,200
11/9 Paid 5,200 11/1 Reversing 1,200

11/1 Reversing 1,200 10/31 1,200

‫المالية ‪A Look at IFRS‬‬ ‫نظرة على المعايير الدولية إلعداد التقارير‬
‫النقاط الرئيسية ‪Key Points‬‬
‫التشابه ‪Similarities‬‬
‫‪The procedures of the closing process are applicable to all companies,‬‬
‫‪whether they are using IFRS or GAAP.‬‬
‫إجراءات عملية اإلغالق قابلة للتطبيق على جميع الشركات ‪ ،‬سواء كانت تستخدم المعايير الدولية‬
‫إلعداد التقارير المالية أو مبادئ المحاسبة المقبولة عموما‪.‬‬
‫‪IFRS generally requires a classified statement of financial position‬‬
‫‪similar to the classified balance sheet under GAAP.‬‬
‫تتطلب المعايير الدولية إلعداد التقارير المالية بشكل عام بيان مركز مالي مصنّف مشابهًا للميزانية‬
‫العمومية المصنفة بموجب مبادئ المحاسبة المقبولة عموما‪.‬‬
‫‪IFRS follows the same guidelines as GAAP for distinguishing between‬‬
‫‪current and non-current assets and liabilities.‬‬
‫تتبع المعايير الدولية إلعداد التقارير المالية نفس المبادئ التوجيهية مثل مبادئ المحاسبة المقبولة‬
‫عموما للتمييز بين األصول والخصوم المتداولة وغير المتداولة‪.‬‬
‫‪LO 6‬‬ ‫‪Copyright ©2018 John Wiley & Son, Inc.‬‬ ‫‪66‬‬
Key Points
Differences
A Look at IFRS
IFRS recommends but does not require the use of the title “statement of
financial position” rather than balance sheet.
‫) باستخدام عنوان "بيان المركز المالي" بدالً من‬IFRS( ‫توصي المعايير الدولية إلعداد التقارير المالية‬
.‫ ولكنها ال تتطلب ذلك‬، ‫الميزانية العمومية‬
The format of statement of financial position information is often presented differently
under IFRS. Although no specific format is required, many companies that follow
IFRS present statement of financial position information in this order:
.‫غالبًا ما يتم عرض شكل معلومات بيان المركز المالي بشكل مختلف بموجب المعايير الدولية إلعداد التقارير المالية‬
‫ فإن العديد من الشركات التي تتبع المعايير الدولية إلعداد التقارير‬، ‫على الرغم من عدم وجود تنسيق محدد مطلوب‬
:‫المالية تقدم بيان معلومات المركز المالي بهذا الترتيب‬
 Non-current assets ‫الموجوداتغير المتداولة‬
 Current assets ‫االصول المتداولة‬
 Equity ‫القيمة المالية‬
 Non-current liabilities ‫مطلوباتغير متداولة‬
 Current liabilities ‫المطلوبات المتداولة‬

‫‪Key Points‬‬ ‫‪A Look at IFRS‬‬
‫‪Differences‬‬
‫‪Under IFRS, current assets are usually listed in the reverse order of liquidity. For‬‬
‫‪example, under GAAP cash is listed first, but under IFRS it is listed last.‬‬
‫بموجب المعايير الدولية إلعداد التقارير المالية ‪ ،‬يتم عادةً إدراج األصول المتداولة بترتيب عكسي للسيولة‪ .‬على سبيل‬
‫المثال ‪ ،‬يتم إدراج النقد ضمن مبادئ المحاسبة المقبولة عموما ً أوالً ‪ ،‬ولكن ضمن المعايير الدولية إلعداد التقارير المالية ‪،‬‬
‫يتم إدراجه أخيرًا‪.‬‬
‫‪IFRS has many differences in terminology from what are shown in your textbook.‬‬
‫المعايير الدولية إلعداد التقارير المالية لديها العديد من االختالفات في المصطلحات عما هو مبين في كتابك المدرسي‪.‬‬
‫‪Both GAAP and IFRS are increasing the use of fair value to report assets. However, at‬‬
‫‪this point IFRS has adopted it more broadly. As examples, under IFRS, companies can‬‬
‫‪apply fair value to property, plant, and equipment, and in some cases intangible‬‬
‫‪assets.‬‬
‫تعمل كل من ‪ GAAP‬و ‪ IFRS‬على زيادة استخدام القيمة العادلة لإلبالغ عن األصول‪ .‬ومع ذلك ‪ ،‬في هذه المرحلة ‪ ،‬اعتمدت المعايير‬
‫الدولية إلعداد التقارير المالية على نطاق أوسع‪ .‬على سبيل المثال ‪ ،‬بموجب المعايير الدولية إلعداد التقارير المالية ‪ ،‬يمكن للشركات‬
‫تطبيق القيمة العادلة على الممتلكات واآلالت والمعدات ‪ ،‬وفي بعض الحاالت األصول غير الملموسة‬
‫‪LO 6‬‬ ‫‪Copyright ©2018 John Wiley & Son, Inc.‬‬ ‫‪68‬‬
A Look at IFRS
Looking to the Future ‫يتطلع إلى المستقبل‬
The IASB and the FASB are working on a project to converge their standards
related to financial statement presentation. A key feature of the proposed
framework is that each of the statements will be organized in the same format, to
separate an entity’s financing activities from its operating and investing activities
and, further, to separate financing activities into transactions with owners and
creditors. Thus, the same classifications used in the statement of financial position
would also be used in the income statement and the statement of cash flows. The
project has three phases. You can follow the joint financial presentation project at
the FASB website.
‫يعمل مجلس معايير المحاسبة الدولية ومجلس معايير المحاسبة الدولية على مشروع لتقريب معاييرهما‬
‫ ومن السمات الرئيسية لإلطار المقترح أنه سيتم تنظيم كل من البيانات بنفس‬.‫المتعلقة بعرض البيانات المالية‬
‫ وكذلك لفصل أنشطة التمويل‬، ‫ لفصل األنشطة التمويلية للكيان عن أنشطته التشغيلية واالستثمارية‬، ‫الشكل‬
‫ فإن نفس التصنيفات المستخدمة في بيان المركز المالي سوف‬، ‫ وبالتالي‬.‫إلى معامالت مع المالكين والدائنين‬
‫ يمكنك متابعة مشروع‬.‫ يتكون المشروع من ثالث مراحل‬.‫تستخدم أيضًا في بيان الدخل وبيان التدفقات النقدية‬
.FASB ‫العرض المالي المشترك على موقع‬
Copyright ‫حقوق النشر‬
Copyright © 2018 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Act without the express written permission of the
copyright owner is unlawful. Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies
for his/her own use only and not for distribution or resale. The Publisher assumes no
responsibility for errors, omissions, or damages, caused by the use of these programs or
from the use of the information contained herein.
Translated by: Mohammed M Ghunaim (IT).
Copyright ©2018 John Wiley & Son, Inc. 70

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Accounting Principles ‫مبادئا لمحاسبة‬

Copyright ©2018 John Wiley & Son, Inc. 2

• May be a computerized worksheet ‫قد تكونورقة عملمحوسبة‬

• Prepared using a five step process‫أعدت باستخدام عملية منخمس خطوات‬

• Use of worksheet is optional‫استخدام ورقة العمل اختياري‬

LO 1 Copyright ©2018 John Wiley & Son, Inc. 3

LO 1 Copyright ©2018 John Wiley & Son, Inc. 4

Salaries and Wages Payable

LO 1 Copyright ©2018 John Wiley & Son, Inc. 5

Add additional accounts as needed.

Check equality of adjusted trial balance columns.

Extend adjusted trial balance amounts to appropriate financial statement columns.

Compute net income or net loss.

Net income is shown on a worksheet in the: ‫فيورقة‬ ‫يظهر صافي الدخل‬

a. income statement debit column only.

B. balance sheet debit column only. ‫الميزانية‬ ‫عمود الخصم في‬

C. income statement credit column and balance sheet

• Income statement is prepared from the income statement

LO 1 Copyright ©2018 John Wiley & Son, Inc. 12

LO 1 Copyright ©2018 John Wiley & Son, Inc. 16

Cash Balance sheet (debit)

LO 2 Copyright ©2018 John Wiley & Son, Inc. 18

TEMPORARY‫مـؤقت‬ PERMANENT ‫ادـئـم‬

All revenue accounts All asset accounts

All expense accounts All liability accounts

Owner's drawing account Owner's capital account

LO 2 Copyright ©2018 John Wiley & Son, Inc. 19

Produce a zero balance in each temporary account.

LO 2 Copyright ©2018 John Wiley & Son, Inc. 20

(Individual) Income (Individual)

LO 2 Copyright ©2018 John Wiley & Son, Inc. 21

GENERAL JOURNAL Page J3

LO 2 Copyright ©2018 John Wiley & Son, Inc. 22

GENERAL JOURNAL Page J3

LO 2 Copyright ©2018 John Wiley & Son, Inc. 23

Copyright ©2018 John

LO 2 Copyright ©2018 John Wiley & Son, Inc. 26

LO 2 Copyright ©2018 John Wiley & Son, Inc. 27

LO 2 Copyright ©2018 John Wiley & Son, Inc. 28

9. Prepare a post-closing trial

6. Prepare an adjusted trial 5. Journalize and post

LO 3 Copyright ©2018 John Wiley & Son, Inc. 29

Assets Liabilities Owner’s Equity

LO 3 Copyright ©2018 John Wiley & Son, Inc. 30

LO 3 ILLUSTRATION 2.29 Copyright ©2018 John Wiley & Son, Inc. 31

On October 1, C. R. Byrd invests $10,000 cash in an advertising

Cash 101 Owner's Capital 301

LO 3 ILLUSTRATION 2.19 Copyright ©2018 John Wiley & Son, Inc. 32

LO 3 Copyright ©2018 John Wiley & Son, Inc. 33

Supplies Supplies Expense

LO 3 Copyright ©2018 John Wiley & Son, Inc. 34

Adjusted Trail Accounts Receivable

LO 3 Copyright ©2018 John Wiley & Son, Inc. 35

LO 3 Copyright ©2018 John Wiley & Son, Inc. 36

LO 3 ILLUSTRATION 4.10 Copyright ©2018 John Wiley & Son, Inc. 37

LO 3 Copyright ©2018 John Wiley & Son, Inc. 38

LO 3 Copyright ©2018 John Wiley & Son, Inc. 39

Case 2: On May 10, 18, Mercato purchased on account equipment