STEP 4 WORKSHEET AND TRIAL BALANCE RECORDING A

STEP 4: WORKSHEET AND TRIAL BALANCE

RECORDING A TRIAL BALANCE ON A WORK SHEET 1 page 410 2 1. Account title 2. Account balance 3. Total, prove, and rule the debit and credit columns 3 LESSON 14 -2 2

ASSIGNMENT • Page 414 • 14 -2 On your own and work together.

ADJUSTMENTS

MERCHANDISE INVENTORY 5 LESSON 14 -3 page 415

ANALYZING AND RECORDING A MERCHANDISE INVENTORY ADJUSTMENT page 416 3 2 3 1 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment with a small letter d in parentheses. 6 LESSON 14 -3

ANALYZING AN ADJUSTMENT WHEN ENDING MERCHANDISE INVENTORY IS GREATER THAN BEGINNING page 417 MERCHANDISE INVENTORY Merchandise Inventory Jan. 1 Bal. 294, 700. 00 Adj. (d) 4, 200. 00 (New Bal. 298, 900. 00) Income Summary Adj. (d) 4, 200. 00 7 LESSON 14 -3

ASSIGNMENTS • Page 418 – Work Together and On Your Own 14 -3

ALLOWANCE METHOD OF RECORDING LOSSES FROM page 419 UNCOLLECTIBLE ACCOUNTS 9 LESSON 14 -4

ESTIMATING UNCOLLECTIBLE ACCOUNTS EXPENSE Total Sales on Account × Percentage = Estimated Uncollectible Accounts Expense $124, 500. 00 × 1% = $1, 245. 00 10 page 420 LESSON 14 -4

ANALYZING AND RECORDING AN ADJUSTMENT FOR page 421 UNCOLLECTIBLE ACCOUNTS EXPENSE 3 1 3 2 1. Enter the estimated uncollectible amount. 2. Enter the same amount in the Adjustments Debit column. 3. Label the two parts with a small letter e in parentheses. 11 LESSON 14 -4

ASSIGNMENTS • Page 422 On your Own and Work Together 14 -4

CALCULATING DEPRECIATION EXPENSE AND BOOK VALUE 1. Subtract the asset’s estimated salvage value from original cost. 2. Divide the estimated total depreciation expense by the years of estimated useful life. 13 Original Cost $1, 250. 00 Estimated Total Depreciation Expense – Estimated Salvage Value = – $250. 00 = Estimated Total Depreciation Expense ÷ Years of Estimated Useful Life = Annual Depreciation Expense $1, 000. 00 ÷ 5 = $200. 00 LESSON 14 -5 $1, 000. 00 1 2

CALCULATING DEPRECIATION EXPENSE AND BOOK VALUE (continued from previous slide) page 424 14 20 X 2 Accumulated Depreciation + 20 X 3 Depreciation Expense = 20 X 3 Accumulated Depreciation $400. 00 + $200. 00 = $600. 00 Original Cost – Accumulated Depreciation = Ending Book Value $1, 250. 00 – $600. 00 = $650. 00 LESSON 14 -5

ANALYZING AND RECORDING ADJUSTMENTS FOR page 425 DEPRECIATION EXPENSE 3 2 3 1 1. Write the debit amounts. 2. Write the credit amounts. 3. Label the adjustments. 15 LESSON 14 -5

ASSIGNMENT • Review Pages 423 -426 • Complete Page 426 – ALL

SUMMARY ASSIGNMENT • Page 439 14 -7