Accounting I

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Accounting I

• Chapter 17 Recording Adjusting Closing
  Entries for a Partnership

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ADJUSTING ENTRIES RECORDED IN A JOURNAL
1. Heading
4. Debit
2. Date
5. Account Credited
6. Credit
3. Account Debited
Lesson 17-1, page 422
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PARTIAL WORK SHEET SHOWING ADJUSTMENTS
Lesson 17-1, page 423
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ADJUSTING ENTRY FOR MERCHANDISE INVENTORY
AFTER ADJUSTMENT
BEFORE ADJUSTMENT
Adj. (a) 15,840.00
Bal. 270,480.00
Bal. 270,480.00
Adj. (a) 15,840.00
(New Bal. 254,640.00)
Lesson 17-1, page 423
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ADJUSTING ENTRY FOR OFFICE SUPPLIES INVENTORY
AFTER ADJUSTMENT
BEFORE ADJUSTMENT
Adj. (b) 4,730.00
Bal. 6,480.00
Bal. 6,480.00
Adj. (b) 4,730.00
(New Bal. 1,750.00)
Lesson 17-1, page 424
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ADJUSTING ENTRY FOR STORE SUPPLIES INVENTORY
AFTER ADJUSTMENT
BEFORE ADJUSTMENT
Adj. (c) 3,910.00
Bal. 6,944.00
Bal. 6,944.00
Adj. (c) 3,910.00
(New Bal. 3,034.00)
Lesson 17-1, page 424
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ADJUSTING ENTRY FOR PREPAID INSURANCE
AFTER ADJUSTMENT
BEFORE ADJUSTMENT
Adj. (d) 3,170.00
Bal. 5,800.00
Bal. 5,800.00
Adj. (d) 3,170.00
(New Bal. 2,630.00)
Lesson 17-1, page 424
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Work Together On Your Own Page 425
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THE INCOME SUMMARY ACCOUNT
Debit Total expenses
Credit Revenue (greater than expenses) (Credit
balance is the net income.)
Lesson 17-2, page 426
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CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT
WITH A CREDIT BALANCE
1
2
1. Heading
2. Date
3. Debit to Close
Lesson 17-2, page 427
4. Credit
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CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH
DEBIT BALANCES
1. Date
2. Account Debited
3. Credit to Close
4. Debit Total
2
4
Lesson 17-2, page 428
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SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT
ACCOUNTS WITH DEBIT BALANCES
(New Bal. 69,615.85)
Closing (costs and expenses) 337,664.15
Lesson 17-2, page 429
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Work Together On Your Own Page 430
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CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND
CLOSE THE INCOME SUMMARY ACCOUNT
2
1
4
1. Date
4. Accounts Credited
2. Account Debited
5. Credits to Record Net Income
Lesson 17-3, page 431
3. Debit to Close
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CLOSING ENTRIES FOR THE PARTNERS DRAWING ACCOUNTS
1. Date
2. Account Debited
3. Debit to Close
4. Account Credited
5. Credits to Record Net Income
2
3
4
1
Lesson 17-3, page 432
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COMPLETED CLOSING ENTRIES FOR A PARTNERSHIP
RECORDED IN A JOURNAL
Lesson 17-3, page 433
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Work Together On Your Own Page 434
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POST-CLOSING TRIAL BALANCE
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1. Write the heading.
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2. List accounts that have balances.
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3. Write debit balances.
4. Write credit balances.
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5. Write the word Totals.
6. Total Debit column.
7. Total Credit column.
8. Verify equality of totals.
9. Rule double lines.
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7
5
Lesson 17-4, page 437
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ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS
ORGANIZES AS A PARTNERSHIP.
1. Source documents checked for accuracy, and
transactions are analyzed.
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2. Transactions are recorded in a journal.
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3. Journal entries are posted to ledgers.
4. Schedules of accounts payable and accounts
receivable are prepared from subsidiary ledgers.
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5. Work sheet is prepared.
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6. Financial statements are prepared.
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7. Adjusting and closing entries are journalized.
8. Adjusting and closing entries are posted.
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9. A post-closing trial balance is prepared.
Lesson 17-4, page 438
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Work Together On Your Own Page 439