LESSON 6 2 Planning Adjusting Entries on a

LESSON 6 -2 Planning Adjusting Entries on a Work Sheet CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2 SUPPLIES ADJUSTMENT ON A WORK SHEET page 158 2 3 1 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2

3 PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET page 159 2 3 1 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2

4 PROVING THE ADJUSTMENTS COLUMNS page 160 OF A WORK SHEET 1 2 1. Rule a single line. 2. Add both the Adjustments Debit and Credit columns. Write each column’s total. 3. Rule double lines. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 6 -2

5 PREPARING A WORK SHEET page 160 C 1. Write the heading. 2. Record the trial balance. 3. Record the supplies adjustment. 4. Record the prepaid insurance adjustment. 5. Prove the Adjustments columns. 6. Extend all balance sheet account balances. 7. Extend all income statement account balances. 8. Calculate and record the net income (or net loss). 9. Total and rule the Income Statement and Balance Sheet columns. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2

6 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2

7 1 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2

8 1 2 496400 10000 15000 102500 120000 6 (a) (b) 20000 500000 71500 10000 356500 Net Income 8 11000 881500 62500 356500 21300 2800 30000 20000 500000 3 4 62500 496400 10000 15000 10000 31000 110000 (b) 10000 (a) 71500 81500 21300 10000 2800 7 30000 71500 5 11000 81500 146600 356500 734900 525000 209900 356500 734900 9 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2

9 TERM REVIEW page 161 n adjustments CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2