Recording Adjusting Entries

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LESSON 16-1

• Recording Adjusting Entries

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ADJUSTING ENTRIES RECORDED FROM A WORK SHEET
page 481
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ADJUSTING ENTRY FOR MERCHANDISE INVENTORYUnique
entry for a merchandising business
page 482
4
ADJUSTING ENTRY FOR SUPPLIESOFFICE
page 483
5
ADJUSTING ENTRY FOR SUPPLIESSTORE
page 483
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ADJUSTING ENTRY FOR PREPAID INSURANCE
page 484
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ADJUSTING ENTRY FOR DEPRECIATIONOFFICE EQUIPMENT
page 484
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ADJUSTING ENTRY FOR DEPRECIATIONSTORE EQUIPMENT
page 485
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ADJUSTING ENTRY FOR FEDERAL INCOME TAXES
page 485
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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

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Worked Together

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LESSON 16-2

• Recording Closing Entries for Income Statement
  Accounts

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CLOSING ENTRY FOR ACCOUNTS WITH CREDIT BALANCES
page 488
1
2
4
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CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH
DEBIT BALANCES
page 489
1
2
4
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CLOSING ENTRY TO RECORD NET INCOME
page 491
16
CLOSING ENTRY FOR DIVIDENDS
page 491
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COMPLETED CLOSING ENTRIES FOR A CORPORATION
page 492
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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

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Work Together

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16-3 POST-CLOSING TRIAL BALANCE
page 496
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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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Work Together

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The End!!!!