Chapter 8 Completing the Accounting Cycle 1 Chapter

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Chapter 8 Completing the Accounting Cycle 1 Chapter 8 – Completing the Accounting Cycle

Chapter 8 Completing the Accounting Cycle 1 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition 8

Adjusting Entries and the Worksheet This tutorial guides you through creating a worksheet and

Adjusting Entries and the Worksheet This tutorial guides you through creating a worksheet and using it to record adjusting entries. For more detailed instructions, refer to Section 8. 2 of the Accounting 1 textbook. 2 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Start with a blank worksheet. 3 Chapter 8 –

Adjusting Entries and the Worksheet Start with a blank worksheet. 3 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Record the header in the familiar “who, what, when”

Adjusting Entries and the Worksheet Record the header in the familiar “who, what, when” format: ? 4 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet List all accounts in order (? ), just as

Adjusting Entries and the Worksheet List all accounts in order (? ), just as you would on a trial balance. 5 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Enter the ? and ? balances of each ledger

Adjusting Entries and the Worksheet Enter the ? and ? balances of each ledger account, and ? the trial balance. 6 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Some amounts on the trial balance are out of

Adjusting Entries and the Worksheet Some amounts on the trial balance are out of date. 7 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Supplies account has a balance of $1480. 90.

Adjusting Entries and the Worksheet The Supplies account has a balance of $1480. 90. 8 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Supplies account should have a balance of $526.

Adjusting Entries and the Worksheet The Supplies account should have a balance of $526. 00, based on supplies that were used up during the year. 9 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The required adjustment is $? 10 Chapter 8 –

Adjusting Entries and the Worksheet The required adjustment is $? 10 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The amount of supplies used up is an ?

Adjusting Entries and the Worksheet The amount of supplies used up is an ? (an income statement account). 11 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The amount of supplies used up is the ?

Adjusting Entries and the Worksheet The amount of supplies used up is the ? (an income statement account). 12 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. 13 Chapter 8

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. 13 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. This is the

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. This is the first adjustment, so it is labelled as 1. 14 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet There are other adjustments required before the trial balance

Adjusting Entries and the Worksheet There are other adjustments required before the trial balance is up to date. 15 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Prepaid Insurance account has a balance of $6564.

Adjusting Entries and the Worksheet The Prepaid Insurance account has a balance of $6564. 00. 16 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Prepaid Insurance account should have a balance of

Adjusting Entries and the Worksheet The Prepaid Insurance account should have a balance of $4070. 00, based on insurance that was used up during the year. 17 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The required adjustment is $? 18 Chapter 8 –

Adjusting Entries and the Worksheet The required adjustment is $? 18 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The amount of insurance used up is an ?

Adjusting Entries and the Worksheet The amount of insurance used up is an ? (an income statement account). 19 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The amount of insurance used up is the ?

Adjusting Entries and the Worksheet The amount of insurance used up is the ? (an income statement account). 20 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. 21 Chapter 8

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. 21 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. This is the

Adjusting Entries and the Worksheet The Worksheet must incorporate these differences. This is the second adjustment, so it is labelled as 2. 22 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Late arriving invoices need to be included. 23 Chapter

Adjusting Entries and the Worksheet Late arriving invoices need to be included. 23 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Late arriving invoices need to be included. The total

Adjusting Entries and the Worksheet Late arriving invoices need to be included. The total of the late invoices is a credit to ? (new amounts owed). 24 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 25

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 25 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 26

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 26 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 27

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 27 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 28

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 28 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 29

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Late Arriving Invoices. 29 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Unearned revenue needs to be included. 30 Chapter 8

Adjusting Entries and the Worksheet Unearned revenue needs to be included. 30 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Unearned revenue needs to be included. Unearned revenue is

Adjusting Entries and the Worksheet Unearned revenue needs to be included. Unearned revenue is a credit to the Unearned Revenue account. 31 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Unearned Revenue. 32 Chapter

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Unearned Revenue. 32 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Unearned Revenue. 33 Chapter

Adjusting Entries and the Worksheet The Worksheet showing adjustments for Unearned Revenue. 33 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Once all adjustments have been made, ? 34 Chapter

Adjusting Entries and the Worksheet Once all adjustments have been made, ? 34 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Next, transfer ? column. Be sure to account for

Adjusting Entries and the Worksheet Next, transfer ? column. Be sure to account for any adjustments. 35 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Transfer all Income ? Be sure to account for

Adjusting Entries and the Worksheet Transfer all Income ? Be sure to account for any adjustments. 36 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet ? the Income Statement and Balance Sheet columns. 37

Adjusting Entries and the Worksheet ? the Income Statement and Balance Sheet columns. 37 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Calculate the Net Income (? ). Net Income goes

Adjusting Entries and the Worksheet Calculate the Net Income (? ). Net Income goes in the outer of the last four columns. 38 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet Rule and total the last four columns of the

Adjusting Entries and the Worksheet Rule and total the last four columns of the Worksheet. 39 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Adjusting Entries and the Worksheet In the case of a Net Loss, the net

Adjusting Entries and the Worksheet In the case of a Net Loss, the net loss amounts would go in the inner of the last four columns. If a company has a net loss, it means expenses are greater than revenues. The net loss amounts need to go in the inner of the last four columns, or the Worksheet will not balance. 40 Chapter 8 – Completing the Accounting Cycle | Accounting 1, 7 th Edition

Chapter 3 Completing the Accounting Cycle Accounting CycleChapter 3 Completing the Accounting Cycle Accounting Cycle
Closing Entries Completing the accounting cycle Accounting CycleClosing Entries Completing the accounting cycle Accounting Cycle
Completing the Accounting Cycle Chapter 4 The AccountingCompleting the Accounting Cycle Chapter 4 The Accounting
Chapter 4 Completing the Accounting Cycle Financial AccountingChapter 4 Completing the Accounting Cycle Financial Accounting
Chapter 4 Completing the Accounting Cycle Accounting 21Chapter 4 Completing the Accounting Cycle Accounting 21
CHAPTER 5 COMPLETING THE ACCOUNTING CYCLE Accounting PrinciplesCHAPTER 5 COMPLETING THE ACCOUNTING CYCLE Accounting Principles
Chapter 4 Completing the Accounting Cycle Accounting 21Chapter 4 Completing the Accounting Cycle Accounting 21
Chapter 4 Completing the Accounting Cycle Financial AccountingChapter 4 Completing the Accounting Cycle Financial Accounting
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CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE Accounting PrinciplesCHAPTER 4 COMPLETING THE ACCOUNTING CYCLE Accounting Principles
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Chapter 8 Completing the Accounting Cycle 1 ChapterChapter 8 Completing the Accounting Cycle 1 Chapter
Chapter 4 Completing the Accounting Cycle Chapter 4Chapter 4 Completing the Accounting Cycle Chapter 4
Chapter 8 Completing the Accounting Cycle 1 ChapterChapter 8 Completing the Accounting Cycle 1 Chapter
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CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE Chapter 4CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE Chapter 4
Completion of the Accounting Cycle Accounting Cycle DuringCompletion of the Accounting Cycle Accounting Cycle During
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Water Cycle Carbon Cycle Phosphorous Cycle Nitrogen CycleWater Cycle Carbon Cycle Phosphorous Cycle Nitrogen Cycle
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Chapter 4 Completing the Accounting Cycle Learning ObjectivesChapter 4 Completing the Accounting Cycle Learning Objectives