lesson 16-1
DESCRIPTION
LESSON 16-1. Recording Adjusting Entries. ADJUSTING ENTRIES RECORDED FROM A WORK SHEET. 1. 2. 3. page 481. ADJUSTING ENTRY FOR MERCHANDISE INVENTORY—Unique entry for a merchandising business. page 482. ADJUSTING ENTRY FOR SUPPLIES — OFFICE. page 483. ADJUSTING ENTRY FOR SUPPLIES — STORE. - PowerPoint PPT PresentationTRANSCRIPT
LESSON 16-1
Recording Adjusting Entries
ADJUSTING ENTRIES RECORDED FROM A WORK SHEET
page 481
11 22 33
ADJUSTING ENTRY FOR MERCHANDISE INVENTORY—Unique entry for a merchandising business page 482
ADJUSTING ENTRY FOR SUPPLIES—OFFICE
page 483
ADJUSTING ENTRY FOR SUPPLIES—STORE
page 483
ADJUSTING ENTRY FOR PREPAID INSURANCE page 484
ADJUSTING ENTRY FOR DEPRECIATION—OFFICE EQUIPMENT page 484
ADJUSTING ENTRY FOR DEPRECIATION—STORE EQUIPMENT page 485
ADJUSTING ENTRY FOR FEDERAL INCOME TAXES page 485
Audit Your Understanding
• When adjusting entries are journalized, why is no source document recorded?
• Because the heading Adjusting Entries is recorded in the account title column to explain all of the adjusting entries that follow
LESSON 16-2
Recording Closing Entries for Income Statement Accounts
CLOSING ENTRY FOR ACCOUNTS WITH CREDIT BALANCES
1122
page 488
44
3333
CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES
1122 44
page 489
33
33
CLOSING ENTRY TO RECORD NET INCOME
page 491
CLOSING ENTRY FOR DIVIDENDSpage 491
COMPLETED CLOSING ENTRIES FOR A CORPORATION
page 492
Audit Your Understanding
Where is the information obtained from for journalizing closing entries for revenue, cost, and expenses?
• (1) Income statement and balance sheet columns of the worksheet
What is the name of the temporary account that is used to summarize the closing entries for revenue, cost, and expenses?
• Income Summary
16-3 POST-CLOSING TRIAL BALANCE
page 496
Audit Your Understanding
Which accounts are listed on a post-closing trial balance?
• Only the general ledger accounts with balances
What is the purpose of preparing a post-closing trial balance?
• To prove the equality of debits and credits in the general ledger after posting the adjusting and closing entries
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