Adjustments were analyzed and planned on the work sheet These adjustments must be journalized, so they can be posted to the general ledger accounts

Size: px
Start display at page:

Download "Adjustments were analyzed and planned on the work sheet These adjustments must be journalized, so they can be posted to the general ledger accounts"

Transcription

1 LESSON 8-1 Recording Adjusting Entries Adjustments were analyzed and planned on the work sheet These adjustments must be journalized, so they can be posted to the general ledger accounts Adjusting entries journal entries recorded to update general ledger accounts at the end of a fiscal period Go to the next page in a journal to record adjusting entries Remember, account balances will not change until they are posted.

2 2 ADJUSTING ENTRY FOR SUPPLIES page Write the heading. 2. Write the date. 3. Write the title of the account debited. Record the debit amount Write the title of the account credited. Record the credit amount. LESSON 8-1

3 ADJUSTING ENTRY FOR PREPAID INSURANCE page Write the date. 2. Write the title of the account debited. Record the debit amount. 3. Write the title of the account credited. Record the credit amount. 3 LESSON 8-1

4 LESSON Recording Closing Entries Permanent accounts Accounts used to accumulate information from one accounting period to the next Also referred to as real accounts Asset, liability, and the owner s capital account Ending balances for one fiscal period become the beginning balances of the next fiscal period

5 LESSON Recording Closing Entries Temporary accounts Accounts used to accumulate information until it is transferred to the owner s capital account Also referred to as nominal accounts Revenue, expense, owner s drawing, and income summary accounts Show changes in the owner s capital for a SINGLE fiscal period Balances of temporary accounts are summarized and transferred to the owner s capital account at the end of the fiscal period Begin a new fiscal period with zero balances Closing entries Journal entries used to prepare temporary accounts for a new fiscal period Temporary accounts must be reduced back to zero (Concept: matching expenses with revenue) Income Summary temporary account used to summarize closing entries for the revenue and expense accounts (no normal balance side depends on net income)

6 NEED FOR THE INCOME SUMMARY ACCOUNT page LESSON 8-2

7 7 CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE page 208 (Debit to close) Write the heading. 2. Write the date. 3. Write the title of the account debited. Record the debit amount. 4. Write the title of the account credited. Record the credit amount. LESSON 8-2

8 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page Date 2. Income Summary 3. Credit 4. Debit amount (Credit to close) LESSON 8-2

9 CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT page Date 2. Debit 3. Credit (Capital: credit to record net income) (Income Summary: debit to close) LESSON 8-2

10 CLOSING ENTRY FOR THE OWNER S DRAWING ACCOUNT page Date 2. Debit 3. Credit (Credit to close) LESSON 8-2

11 11 TERMS REVIEW page 212 permanent accounts temporary accounts closing entries LESSON 8-2

12 LESSON 8-3 Preparing a Post-Closing Trial Balance

13 GENERAL LEDGER ACCOUNTS AFTER ADJUSTING AND CLOSING ENTRIES ARE POSTED page LESSON 8-3

14 14 POST-CLOSING TRIAL BALANCE Post-closing trial balance Trial balance prepared AFTER the closing entries are posted to verify that debits equal credits in the general ledger post means after Only general ledger accounts with balances are included on a post-closing trial balance Permanent accounts have balances and DO appear on the post-closing TB; temporary accounts do NOT have balances nor do they appear on the post-closing TB LESSON 8-2

15 15 POST-CLOSING TRIAL BALANCE page Heading 2. Account titles 3. Account balances 4. Single rule 5. Compare totals 6. Totals 7. Record totals 8. Double rule LESSON 8-3

16 16 Accounting cycle The series of accounting activities included in recording financial information for a fiscal period LESSON 8-3

17 ACCOUNTING CYCLE FOR A SERVICE BUSINESS page Analyzes transactions 2. Journalize 3. Post 4. Prepare work sheet 5. Prepare financial statements 6. Journalize adjusting and closing entries 7. Post adjusting and closing entries 8. Prepare post-closing trial balance LESSON 8-3

18 18 TERMS REVIEW page 219 post-closing trial balance accounting cycle LESSON 8-3

Recording Adjusting and Closing Entries for a Service Business

Recording Adjusting and Closing Entries for a Service Business 1 Chapter 8 Mindy Boyd - HHS Recording Adjusting and Closing Entries for a Service Business 2 Vocabulary Words Chapter 8 Adjusting Entries = journal entries recorded to update general ledger accounts at

More information

COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -

COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries - COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries - Worksheet Overview Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Debit Credit Debit Credit Debit

More information

Unit 2 The Basic Accounting Cycle

Unit 2 The Basic Accounting Cycle Unit 2 The Basic Accounting Cycle Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Business Transactions and the Accounting Equation Transactions That Affect Assets, Liabilities, and

More information

Accounting I Lesson Plan

Accounting I Lesson Plan Accounting I Lesson Plan Name: Terry Wilhelmi Day/Date: Topic: Recording Adjusting and Closing Entries for a Unit: Chapter 10 Service Business I. Objective(s): By the end of today s lesson, the student

More information

Accounting 1. Lesson Plan. Name: Terry Wilhelmi Day/Date: Topic: Recording Adjusting and Closing Entries - Partnership Unit: 3 Chapter 18

Accounting 1. Lesson Plan. Name: Terry Wilhelmi Day/Date: Topic: Recording Adjusting and Closing Entries - Partnership Unit: 3 Chapter 18 Accounting 1 Lesson Plan Name: Terry Wilhelmi Day/Date: Topic: Recording Adjusting and Closing Entries - Partnership Unit: 3 Chapter 18 I. Objective(s): By the end of today s lesson, the student will be

More information

Chapter 17. Recording Adjusting and Closing Entries for a Partnership. South-Western Educational Publishing

Chapter 17. Recording Adjusting and Closing Entries for a Partnership. South-Western Educational Publishing Chapter 17 Recording Adjusting and Closing Entries for a Partnership PARTIAL WORK SHEET SHOWING ADJUSTMENTS Lesson 17-1, page 431 ADJUSTING ENTRIES RECORDED IN A JOURNAL 2 1 5 3 4 6 1. Heading 4. Debit

More information

Chapter 3 Adjusting the Accounts

Chapter 3 Adjusting the Accounts Bennett S. LeBow College of Business Financial Accounting Professor Jane Kaplan Professor Notes Chapter 3 Adjusting the Accounts Measuring Revenues and Expenses o Accrual accounting is a form of accounting

More information

Accounting 1 Semester 1 Final Exam Review Practice

Accounting 1 Semester 1 Final Exam Review Practice Accounting 1 Semester 1 Final Exam Review Practice True/False Indicate whether the sentence or statement is true or false. 1. Accounting is the language of business. 2. The relationship among assets, liabilities,

More information

Closing Entries and the Postclosing Trial Balance

Closing Entries and the Postclosing Trial Balance 6-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter Closing Entries and the Postclosing Trial Balance 6 Section 1: Closing Entries Section Objectives 1. Journalize and post

More information

PrinciplesofAccounting HelpLesson #5. Closing Entries. By Laurie L. Swanson

PrinciplesofAccounting HelpLesson #5. Closing Entries. By Laurie L. Swanson PrinciplesofAccounting HelpLesson #5 Closing Entries By Laurie L. Swanson PrinciplesofAccounting HelpLesson #5 Viewing this Presentation Press the F11 key to expand the screen. Click the button below to

More information

Completing the Accounting Cycle

Completing the Accounting Cycle C H A P T E R 4 Completing the Accounting Cycle Financial Accounting 14e Warren Reeve Duchac human/istock/360/getty Images Flow of Accounting Information (slide 1 of 5) End-of-Period Spreadsheet (Work

More information

Chapter 4. Completing the accounting cycle

Chapter 4. Completing the accounting cycle 1 Chapter 4 Completing the accounting cycle 2 Learning objectives 1. Prepare an accounting worksheet and describe its purpose 2. Prepare a classified balance sheet and explain the major headings 3. Explain

More information

PART A: TRUE/FALSE (1 point each):

PART A: TRUE/FALSE (1 point each): CHABOT COLLEGE General Accounting (BUS-7) Dmitriy Kalyagin EXAM #2 (Chapters 4-6) PART A: TRUE/FALSE (1 point each): 1. The book value of an asset is equal to its true market value. 2. The worksheet is

More information

Accounting Basics, Part 2

Accounting Basics, Part 2 Accounting Basics, Part 2 The Accounting Cycle, T-Accounts, Trial Balance, and from Ledger to Trial Closing Balance Part 2 What s Here Introduction The Accounting Cycle T-Accounts Trial Balance Adjusting

More information

Review of the Accounting Process THE BASIC MODEL

Review of the Accounting Process THE BASIC MODEL THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what

More information

Closing the Books Section 7 Accounting 11

Closing the Books Section 7 Accounting 11 Closing the Books At the end of a fiscal year once all the transactions for the entity have been recorded, the revenue and expense accounts must be closed out to a zero balance. These accounts have been

More information

ACCOUNTING LIFEPAC 7 ADJUSTING & CLOSING ENTRIES

ACCOUNTING LIFEPAC 7 ADJUSTING & CLOSING ENTRIES Unit 7 ACCOUNTING LIFEPAC 7 ADJUSTING & CLOSING ENTRIES CONTENTS I. ADJUSTING ENTRIES.............................. 3 The Purpose of the Worksheet....................... 3 The Need for Adjustments..........................

More information

Advanced Accounting. Chapter 4: Financial Reporting for a Departmentalized Business

Advanced Accounting. Chapter 4: Financial Reporting for a Departmentalized Business Advanced Accounting Chapter 4: Financial Reporting for a Departmentalized Business Financial statements are used to summarize financial info and then are used to evaluate the financial position and progress

More information

13 Financial Statements and Closing Procedures

13 Financial Statements and Closing Procedures 13-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 13 Financial Statements and Closing Procedures Section 1: Preparing the Financial Statements Section Objectives 1. Prepare

More information

Chapter 4. Completing the Accounting Cycle. Albrecht, Stice, Stice, Swain

Chapter 4. Completing the Accounting Cycle. Albrecht, Stice, Stice, Swain Chapter 4 Completing the Accounting Cycle Albrecht, Stice, Stice, Swain COPYRIGHT 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks

More information

Unit 2 The Basic Accounting Cycle

Unit 2 The Basic Accounting Cycle Unit 2 The Basic Accounting Cycle Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Business Transactions and the Accounting Equation Transactions That Affect Assets, Liabilities, and

More information

Objective Evidence. Unit of Measurement. Accounting Period Cycle. Business Entity. Going Concern. Adequate Disclosure. Matching Expenses with Revenue

Objective Evidence. Unit of Measurement. Accounting Period Cycle. Business Entity. Going Concern. Adequate Disclosure. Matching Expenses with Revenue Accounting Concept: A source document is prepared for each transaction Objective Evidence Accounting Concept: Business transactions are stated in numbers that have common values; that is, using a common

More information

SOLUTIONS. Learning Goal 16

SOLUTIONS. Learning Goal 16 Learning Goal 16: Prepare Closing Entries S1 Learning Goal 16 Multiple Choice 1. d 2. a 3. b 4. d Because drawing is closed directly into the capital account, not into income summary. 5. c 6. b This a

More information

Take-Off Trial Balance

Take-Off Trial Balance Closing Entries, and Accounting Worksheet Created 2007 By Michael Worthington Elizabeth City State University Take-Off is initial stage of 1. Copy (take-off) unadjusted from General Ledger to the worksheet

More information

Supplement to CHAPTER 3 CLOSING ENTRIES AND THE WORK SHEET

Supplement to CHAPTER 3 CLOSING ENTRIES AND THE WORK SHEET Supplement to CHAPTER 3 CLOSING ENTRIES AND THE WORK SHEET Answers to Review Questions 1. No, the work sheet cannot be used as a substitute for the financial statements. It is a tool used in preparing

More information

TRANSACTIONS ANALYSIS EXAMPLE. Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations:

TRANSACTIONS ANALYSIS EXAMPLE. Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations: TRANSACTIONS ANALYSIS EXAMPLE Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations: 1. Billings to clients for services provided: $350,000

More information

Accrual Accounting Process: Part I

Accrual Accounting Process: Part I Accrual Accounting Process: Part I 15.511 Corporate Accounting Summer 2004 Professor SP Kothari Sloan School of Management Massachusetts Institute of Technology June 11, 2004 1 An accountant s functions

More information

Baseline Assessment. Date Accounting 1

Baseline Assessment. Date Accounting 1 Name Baseline Assessment Date Accounting 1 Part 1: Instructions: Place a check mark under the column for each account to determine which Financial the accounts belongs on. Financial Information 1. Cash

More information

Completing the Accounting Cycle

Completing the Accounting Cycle HOSP 1210 (Financial Acct) Learning Centre Completing the Accounting Cycle At the end of the accounting cycle, the final steps are to journalize and post closing entries and to prepare a post-closing trial

More information

Welcome to the financial reports topic. 5-1-1

Welcome to the financial reports topic. 5-1-1 Welcome to the financial reports topic. 5-1-1 We will explore the effect of standard processes in SAP Business One on Financial Reports: such as the Balance Sheet, the Trial Balance, and the Profit and

More information

The Work Sheet and the Closing Process

The Work Sheet and the Closing Process C H A P T E R 4 The Work Sheet and the Closing Process A systematic approach is essential for efficient and accurate processing of large amounts of information. Whether work sheets are on paper or computerized,

More information

ILLUSTRATION 3-1 DOUBLE-ENTRY ACCOUNTING SYSTEM

ILLUSTRATION 3-1 DOUBLE-ENTRY ACCOUNTING SYSTEM ILLUSTRATION 3-1 DOUBLE-ENTRY ACCOUNTING SYSTEM ASSETS Increase Decrease + DOUBLE-ENTRY ACCOUNTING REAL (PERMANENT) ACCOUNTS = LIABILITIES + Rules of Thumb + If the "normal balance" for an account is a

More information

CHAPTER 3 The Accounting Information System

CHAPTER 3 The Accounting Information System CHAPTER 3 The Accounting Information System 3-1 LECTURE OUTLINE Chapter 3 provides a review of accounting procedures throughout the accounting cycle. Depending on time constraints and students accounting

More information

Accounting I Lesson Plan

Accounting I Lesson Plan Accounting I Lesson Plan Name: Terry Wilhelmi Day/Date: Topic: Work Sheet for a Service Business Unit: Chapter 8 I. Objective(s): By the end of today s lesson, the student will be able to: define accounting

More information

CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements

CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 9. 2 K 17. 4

More information

The Accounting Cycle. Chapters 4 and 3

The Accounting Cycle. Chapters 4 and 3 The Accounting Cycle Chapters 4 and 3 Accumulate... Accumulate... Communicate! Business Transactions Source Documents Analyzed Journalized Posted The Accounting Cycle 1. Business transactions create source

More information

Completing the Accounting Cycle

Completing the Accounting Cycle CHAPTER 4 Completing the Accounting Cycle Making a Statement INCOME STATEMENT Revenues Expenses = Net Income STATEMENT OF OWNER S EQUITY Beginning Balance + Net Income Withdrawals = Ending Balance BALANCE

More information

SOLUTION DISCUSSION QUESTIONS. Suggested Responses GENERAL JOURNAL Closing Entries

SOLUTION DISCUSSION QUESTIONS. Suggested Responses GENERAL JOURNAL Closing Entries SOLUTION GENERAL JOURNAL PAGE 4 1 20 Closing Entries 1 2 Dec. 31 Commissions Earned 92,824.00 2 3 Income from Services 23,050.00 3 4 Income Summary 115,874.00 4 5 5 6 31 Income Summary 37,194.00 6 7 Salary

More information

Unit 1: Accounting for a Service Business Organized as a Proprietorship (Chapters 2 10)

Unit 1: Accounting for a Service Business Organized as a Proprietorship (Chapters 2 10) Unit 1: Accounting for a Service Business Organized as a Proprietorship (Chapters 2 10) I. Analyzing Business Transactions A. Effect of business transactions on the fundamental accounting equation B. Principles

More information

Century 21 Accounting, 8e General Journal Chapter Outlines

Century 21 Accounting, 8e General Journal Chapter Outlines Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting

More information

Chapter 3. Adjusting the accounts. Appendix 3A: An alternative method of recording deferrals

Chapter 3. Adjusting the accounts. Appendix 3A: An alternative method of recording deferrals 1 Chapter 3 Adjusting the accounts Appendix 3A: An alternative method of recording deferrals 2 Learning objectives 1. Prepare adjusting entries for prepaid expenses originally recorded in an expense account

More information

Questions and Answers

Questions and Answers Questions and Answers 1. List and describe the major steps in the accounting cycle. 2. In accounting, debit and credit have specific meanings. What are they? 3. You overheard one of your friends telling

More information

ACCOUNTING LIFEPAC 5 PREPARING THE WORKSHEET

ACCOUNTING LIFEPAC 5 PREPARING THE WORKSHEET Unit 5 ACCOUNTING LIFEPAC 5 PREPARING THE WORKSHEET CONTENTS I. PREPARING A SIX-COLUMN WORKSHEET.............. 3 The Heading Section.............................. 5 The Account Title and Trial Balance

More information

CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives

CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting

More information

SOLUTIONS TO BRIEF EXERCISES

SOLUTIONS TO BRIEF EXERCISES SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 4-1 1. Prepare a trial balance on the work sheet 2. Enter adjustment data 3. Enter adjusted balances 4. Enter adjusted balances in appropriate statement columns

More information

Accrual accounting ACCRUAL VERSUS CASH BASIS OF ACCOUNTING. ACCRUAL VERSUS CASH BASIS OF ACCOUNTING continued. Chapter 3

Accrual accounting ACCRUAL VERSUS CASH BASIS OF ACCOUNTING. ACCRUAL VERSUS CASH BASIS OF ACCOUNTING continued. Chapter 3 Chapter 3 Accrual accounting concepts PowerPoint presentation by Anne Abraham University of Wollongong 2009 John Wiley & Sons Australia, Ltd ACCRUAL VERSUS CASH BASIS OF ACCOUNTING Accrual-based accounting

More information

STUDENT HANDBOOK FOR FINDING AND CORRECTING ERRORS

STUDENT HANDBOOK FOR FINDING AND CORRECTING ERRORS 1 STUDENT HANDBOOK FOR FINDING AND CORRECTING ERRORS FINDING ERRORS To assure the accuracy of accounting records, care should be taken when transactions are recorded and posted and financial statements

More information

ACCT1115. Review Package - Midterm SOLUTION Fall 2013

ACCT1115. Review Package - Midterm SOLUTION Fall 2013 ACCT1115 Review Package - Midterm SOLUTION Fall 2013 Part I Multiple Choice 1) How should you record the purchase of an expensive automobile? a) Decrease cash, increase assets b) Decrease cash, increase

More information

1. If the assets owned by a business total $100,000 and liabilities total $70,000, stockholders' equity totals $30,000.

1. If the assets owned by a business total $100,000 and liabilities total $70,000, stockholders' equity totals $30,000. Rallis Page 1 Name: _ Date: 1. If the assets owned by a business total $100,000 and liabilities total $70,000, stockholders' equity totals $30,000. A) True B) False 2. If total liabilities decreased by

More information

CHAPTER 3: PREPARING FINANCIAL STATEMENTS

CHAPTER 3: PREPARING FINANCIAL STATEMENTS CHAPTER 3: PREPARING FINANCIAL STATEMENTS I. TIMING AND REPORTING A. The Accounting Period Time period assumption an organization s activities can be divided into specific time periods. Examples: a month,

More information

Accounting Skills Assessment Practice Exam Page 1 of 10

Accounting Skills Assessment Practice Exam Page 1 of 10 NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +

More information

Accounting Cycle. Matching Principle

Accounting Cycle. Matching Principle CHAPTER 3 Accounting Cycle Analyze and record the transactions Post the transactions and prepare trial balance Adjust the accounts and prepare trial balance Prepare the financial statements Close the accounts

More information

Chapter 13 Financial Statements and Closing Procedures

Chapter 13 Financial Statements and Closing Procedures Chapter 13 - Financial Statements and Closing Procedures Chapter 13 Financial Statements and Closing Procedures TEACHING OBJECTIVES 13-1) Prepare a classified income statement from the worksheet. 13-2)

More information

b. Do not recognize revenue until steel is shipped. c. Do not recognize revenue until next year after the games are played.

b. Do not recognize revenue until steel is shipped. c. Do not recognize revenue until next year after the games are played. CHAPTER FOUR SE4-2 Revenue recognition a. Recognize revenue from car sales for 12,000. Notes receivable $12,000 Sales revenue $12,000 b. Do not recognize revenue until steel is shipped. c. Do not recognize

More information

(a) Prepaid Insurance to recognize insurance expired during the period.

(a) Prepaid Insurance to recognize insurance expired during the period. BRIEF EXERCISE 4-1 (a) (b) (c) (d) (e) (f) Cash $ 100 0 0 +800 2,500 0 Net Income $0 20 +1,300 0 0 600 BRIEF EXERCISE 4-2 (a) Prepaid Insurance to recognize insurance expired during the period. (b) Depreciation

More information

The Accounting Cycle Completed

The Accounting Cycle Completed 5 The Accounting Cycle Completed Adjusting, Closing, and Post-Closing Trial Balance THE BIG PICTURE You are planning your school schedule for next term. Your goal is to take a full course load and find

More information

Accounting Self Study Guide for Staff of Micro Finance Institutions

Accounting Self Study Guide for Staff of Micro Finance Institutions Accounting Self Study Guide for Staff of Micro Finance Institutions LESSON 5 Summarizing Changes in Financial Position OBJECTIVES The purpose of this lesson is to show how to summarize the transactions

More information

Chapter 4. Completing the accounting cycle. Appendix 4A: Reversing entries

Chapter 4. Completing the accounting cycle. Appendix 4A: Reversing entries 1 Chapter 4 Completing the accounting cycle Appendix 4A: Reversing entries 2 Learning objective 1. Prepare reversing entries and describe their purpose 3 Reversing entries Reversing entries are optional

More information

> DO IT! Chapter 3 Adjusting the Accounts. Timing Concepts. Adjusting Entries for Deferrals D-12. Solution

> DO IT! Chapter 3 Adjusting the Accounts. Timing Concepts. Adjusting Entries for Deferrals D-12. Solution Chapter 3 Adjusting the Accounts Timing Concepts Review the glossary terms. Study carefully the revenue recognition principle, the expense recognition principle, and the time period assumption. Several

More information

CHAPTER. Closing Entries and the Postclosing Trial Balance

CHAPTER. Closing Entries and the Postclosing Trial Balance pri30597_sm_ch06.qxd 8/2/08 1:24 PM Page 121 CHAPTER 6 Closing Entries and the Postclosing Trial Balance Chapter Opener: Students should recognize that financial statements can be used to evaluate Thinking

More information

Most of us have had to file a personal tax return. At

Most of us have had to file a personal tax return. At C H A P T E R Completing the Accounting Cycle AP Photo/Gregory Bull E L E C T R O N I C A R T S I N C. Most of us have had to file a personal tax return. At the beginning of the year, you estimate your

More information

In the event of a tie, the score on the last ten questions will be used as a tie-breaker.

In the event of a tie, the score on the last ten questions will be used as a tie-breaker. NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING I 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the

More information

Financial Accounting. (Exam)

Financial Accounting. (Exam) Financial Accounting (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials Take a quick tour by visiting wwwaccountingcoachcom/quicktour Table of Contents (click to

More information

Assignment 6: Adjusting Journal Entries and

Assignment 6: Adjusting Journal Entries and Name: Due Date: December 12, 2011 Score: out of a possible 47 Course value: 7.5% Assignment 6: Adjusting Journal Entries and Worksheets A series of transactions are presented and their journal entries

More information

MOUNTAIN VIEW SCHOOL DISTRICT

MOUNTAIN VIEW SCHOOL DISTRICT MOUNTAIN VIEW SCHOOL DISTRICT COMPUTERIZED ACCOUNTING I Curriculum Content Frameworks 0 Curriculum Content Frameworks COMPUTERIZED ACCOUNTING I Grade Levels: 0,, Course Code: 900 Prerequisite: Tech Prep

More information

Accounting 1 Instructor Notes

Accounting 1 Instructor Notes Accounting 1 Instructor Notes CHAPTER TWO ANALYZING TRANSACTIONS How do you organize your daily life? Is it with your computer? Is it with your IPhone or Blackberry? What ever you use, there is a process

More information

Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle

Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle Page 1 of 27 Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle Overview In Module 2 you studied the fundamental steps in recording accounting information by

More information

Lesson 5.4 End-of-Fiscal Period Activities. Merchandising Business

Lesson 5.4 End-of-Fiscal Period Activities. Merchandising Business Lesson Plan 5.4 End-of-Fiscal Period Activities for a Merchandising Business Course Title Accounting I Session Title End-of-Fiscal Period Activities for a Merchandising Business Lesson Purpose Demonstrate

More information

Total Test Questions: 65 Levels: Grades Units of Credit:.50

Total Test Questions: 65 Levels: Grades Units of Credit:.50 DESCRIPTION The first summative assessment in a series, Accounting I measures the knowledge and skills necessary for understanding the basic elements and concepts of double-entry accounting systems. Topics

More information

Accrual Accounting Process

Accrual Accounting Process Accrual Accounting Process 15.501 Accounting Spring 2004 Professor S. Roychowdhury Sloan School of Management Massachusetts Institute of Technology Feb 17/18, 2004 1 An accountant s functions include Classifying

More information

Completing the Accounting Cycle. SMART TOUCH LEARNING Balance Sheet May 31, 2013 $ 4,800 2,600 30, ,000 $ 40,500 $18, ,

Completing the Accounting Cycle. SMART TOUCH LEARNING Balance Sheet May 31, 2013 $ 4,800 2,600 30, ,000 $ 40,500 $18, , 4 Completing the Accounting Cycle SMART TOUCH LEARNING ance Sheet May 31, 2013 All accounts not on the balance sheet reset to zero at the end of a period, and update the capital balance. Assets Current

More information

Chapter 6: Closing Entries and the Postclosing Trial Balance

Chapter 6: Closing Entries and the Postclosing Trial Balance Chapter 6: Closing Entries and the Postclosing Trial Chapter Opener: Thinking Critically Students should recognize that financial statements can be used to evaluate net profit or loss, return on investments,

More information

Chapter 4 20/09/2012. Why Adjustments Are Needed. The Need for Adjustments. Adjustments. Types of Deferral Adjustments.

Chapter 4 20/09/2012. Why Adjustments Are Needed. The Need for Adjustments. Adjustments. Types of Deferral Adjustments. Chapter 4 Adjustments, Financial Statements, and the Quality of Financial Reporting Adjustments: How, When and Why? Preparing the Adjusted Trial Balance Preparing Adjusted Financial Statements The Closing

More information

Accounting Principles Dr. Mishari Alfraih. Adjusting the Accounts

Accounting Principles Dr. Mishari Alfraih. Adjusting the Accounts Accrual- vs. Cash-Basis Accounting Accrual-Basis Accounting Adjusting the Accounts Transactions recorded in the periods in which the events occur Revenues are recognized when earned, rather than when cash

More information

Accounting For Managers

Accounting For Managers Accounting For Managers Professor ZHOU Ning SCHOOL OF ECONOMICS AND MANAGEMENT BEIHANG UNIVERSITY zning80@buaa.edu.cn Chapter 4 Accounting Records and Systems The objectives of chapter 4 Recording fundamentals

More information

Chapter 4: Adjusting the accounts and preparing Financial statements. 4.1 Measurement of Profit Income Expense = profit

Chapter 4: Adjusting the accounts and preparing Financial statements. 4.1 Measurement of Profit Income Expense = profit Chapter 4: Adjusting the accounts and preparing Financial statements 4.1 Measurement of Profit Income Expense = profit Cash basis Income is recorded wen cash is received Expenses are recorded when cash

More information

In the event of a tie, the score on the last ten questions will be used as a tie-breaker.

In the event of a tie, the score on the last ten questions will be used as a tie-breaker. NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING II 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the

More information

Chapter 4 Adjustments, Financial Statements, and the Quality of Earnings

Chapter 4 Adjustments, Financial Statements, and the Quality of Earnings Chapter 4 Adjustments, Financial Statements, and the Quality of Earnings ANSWERS TO QUESTIONS 1. Adjusting entries are made at the end of the accounting period to record all revenues and expenses that

More information

Study Guide - Final Exam Accounting I

Study Guide - Final Exam Accounting I Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger

More information

A+ 97% B+ 87% C+ 77% D+ 67% A 93% B 83% C 73% D 63% A- 90% B- 80% C- 70% D- 60%

A+ 97% B+ 87% C+ 77% D+ 67% A 93% B 83% C 73% D 63% A- 90% B- 80% C- 70% D- 60% General Goal This course is designed to give students an introduction to accounting. In it, we will explore many topics including: accounting for a service business organized as a proprietorship, accounting

More information

Step-by-Step Guide The m-fin Trial Balance Summary Report. What is the m-fin Trial Balance Summary Report? Using the Trial Balance Summary Report

Step-by-Step Guide The m-fin Trial Balance Summary Report. What is the m-fin Trial Balance Summary Report? Using the Trial Balance Summary Report What is the m-fin Trial Balance Summary Report? The Trial Balance Summary report shows the Balance Sheet Summary and the Revenue and Expenditure Summary within one report. The Balance Sheet Summary report

More information

Recording Adjusting and Closing Entries for a Corporation

Recording Adjusting and Closing Entries for a Corporation C H A P T E R 1 6 Recording Adjusting and Closing Entries for a Corporation STOCKBYTE/GETTY IMAGES O B J E C T I V E S After studying Chapter 16, you will be able to: 1. Identify accounting concepts and

More information

The Accounting Cycle Completed

The Accounting Cycle Completed 5 The Accounting Cycle Completed T HE B IG P ICTURE Accountants have come a long way from the old stereotype of bean counter a pale figure with a green eyeshade who tends cloth-bound ledgers and journals

More information

BAF3M Accounting. Chapter 5 The Expanded Ledger: Revenue, Expenses, Drawings

BAF3M Accounting. Chapter 5 The Expanded Ledger: Revenue, Expenses, Drawings BAF3M Accounting Chapter 5 The Expanded Ledger: Revenue, Expenses, Drawings 5.1 Expanding the Ledger To date, we ve only used one single account for owner s equity The expanded owner s equity section includes

More information

Lesson Plan 2.6 Closing the Fiscal Period

Lesson Plan 2.6 Closing the Fiscal Period Lesson Plan 2.6 Closing the Fiscal Period Course Title Accounting I Lesson Purpose Journalize and post closing entries and check for accuracy. Behavioral Objectives Journalize and post adjusting entries.

More information

ACC Financial Accounting Review for Test 1 (includes chapters 1, 2 and 3)

ACC Financial Accounting Review for Test 1 (includes chapters 1, 2 and 3) ACC 201 - Financial Accounting Review for Test 1 (includes chapters 1, 2 and 3) From the following list of questions, I will pick 27 multiple choice questions(each worth 1.5 points=40.5points) and one

More information

CHAPTER 3 ADJUSTING THE ACCOUNTS

CHAPTER 3 ADJUSTING THE ACCOUNTS CHAPTER 3 ADJUSTING THE ACCOUNTS TIME PERIOD ASSUMPTION The time period (or periodicity) assumption assumes that the economic life of a business can be divided into artificial time periods generally a

More information

Chapter 2. Analyzing transactions

Chapter 2. Analyzing transactions 1 Chapter 2 Analyzing transactions 2 Learning objectives 1. Explain the steps in the accounting cycle and each step s supporting documentation 2. Explain the purpose of source documents 3. Describe an

More information

Learn Accounting Understand Business: Course Review Answers

Learn Accounting Understand Business: Course Review Answers Learn Accounting Understand Business: Course Review Answers 1. What type of accounting measures the activity of the company by looking at economic events regardless of when cash transactions occur? A.

More information

Horngren's Accounting,11e (Miller-Nobles) Chapter 2 Recording Business Transactions. Learning Objective Copyright 2016 Pearson Education, Inc.

Horngren's Accounting,11e (Miller-Nobles) Chapter 2 Recording Business Transactions. Learning Objective Copyright 2016 Pearson Education, Inc. Horngren's Accounting,11e (Miller-Nobles) Chapter 2 Recording Business Transactions Learning Objective 2-1 1) Which is a true statement regarding the accounting equation? A) The equation can be stated

More information

CHAPTER 2 REVIEW OF THE ACCOUNTING PROCESS. Lecture Outline

CHAPTER 2 REVIEW OF THE ACCOUNTING PROCESS. Lecture Outline CHAPTER 2 REVIEW OF THE ACCOUNTING PROCESS Overview Chapter 1 explained that the primary means of conveying financial information to investors, creditors, and other external users is through financial

More information

WHY ADJUSTING JOURNAL ENTRIES? CHAPTER FIVE. ADJUSTING ENTRIES Page 145 MATCHING PRINCIPLE WHY ENDING BALANCE NOT CORRECT?

WHY ADJUSTING JOURNAL ENTRIES? CHAPTER FIVE. ADJUSTING ENTRIES Page 145 MATCHING PRINCIPLE WHY ENDING BALANCE NOT CORRECT? CHAPTER FIVE ADJUSTING ENTRIES Page 1 WHY ADJUSTING JOURNAL ENTRIES?! All amounts must be correct before financial statements printed! Test ending balance in each account! Auditing! Test accounting system,

More information

General Ledger. IT S IMPORTANT TO KNOW WHICH ACCOUNTS IS ASSETS, OWNERS EQUITY and LIABILITIES.

General Ledger. IT S IMPORTANT TO KNOW WHICH ACCOUNTS IS ASSETS, OWNERS EQUITY and LIABILITIES. General Ledger Write down the first four steps of the Accounting cycle: 1. 2. 3. 4. So in other words: 1. Firstly a transaction need to happen, 2. secondly the transaction need to be filled into a source

More information

Haddon Township High School Course Overview

Haddon Township High School Course Overview Haddon Township High School Course Overview Subject Area: Business Education Course Name: Accounting I Summary: This course is designed to enable students to learn how to set up and maintain financial

More information

Periodicity Assumption... Time Period Assumption... Chapter 4 Accrual Accounting Concepts

Periodicity Assumption... Time Period Assumption... Chapter 4 Accrual Accounting Concepts Financial Accounting: Tools for Business Decision Making, 4th Ed. CHAPTER 4 Kimmel, Weygandt, Kieso Chapter 4 Accrual Accounting Concepts KEY THINGS WE LL DO: Refresh and expand Ch.3 concepts. Differentiate

More information

When you become aware that something in your budget and/or your general ledger needs to be corrected, what you need is a journal entry.

When you become aware that something in your budget and/or your general ledger needs to be corrected, what you need is a journal entry. Making Budget Journal Entries When you become aware that something in your budget and/or your general ledger needs to be corrected, what you need is a journal entry. You may begin on the main budget menu

More information

CHAPTER 4. Completion of the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE. Brief Exercises 1, 2, 3 1, 2, 3, *11 7, 8 4, *17, *18 *10, *11, *12

CHAPTER 4. Completion of the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE. Brief Exercises 1, 2, 3 1, 2, 3, *11 7, 8 4, *17, *18 *10, *11, *12 CHAPTER 4 Completion of the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises Problems Set A Problems Set B 1. Prepare closing entries and a postclosing

More information

Review for Test 1 : INCLUDES CHAPTERS 1, 2, 3 & 4 (For Friday class ONLY)

Review for Test 1 : INCLUDES CHAPTERS 1, 2, 3 & 4 (For Friday class ONLY) Review for Test 1 : INCLUDES CHAPTERS 1, 2, 3 & 4 (For Friday class ONLY) Name The following review includes 100 questions. On the test students will answer 33 questions selected from the review. MULTIPLE

More information