Chapter Review 14-17 A lot of information to cover Chapter 14 Chapter 15 Chapter 16 Chapter 17.
Acct20-Chapter 17
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Transcript of Acct20-Chapter 17
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Accounting IAccounting I
Chapter 17 – Recording Adjusting & Closing
Entries for a Partnership
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ADJUSTING ENTRIES RECORDED IN A JOURNALADJUSTING ENTRIES RECORDED IN A JOURNAL
3. Account Debited
1. Heading 4. Debit
2. Date 5. Account Credited
6. Credit
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Lesson 17-1, page 422Lesson 17-1, page 422
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PARTIAL WORK SHEET SHOWING ADJUSTMENTSPARTIAL WORK SHEET SHOWING ADJUSTMENTS
Lesson 17-1, page 423Lesson 17-1, page 423
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BEFORE ADJUSTMENTAFTER ADJUSTMENT
Bal. 270,480.00Bal. 270,480.00
ADJUSTING ENTRY FOR MERCHANDISE INVENTORY ADJUSTING ENTRY FOR MERCHANDISE INVENTORY
Income Summary
(New Bal. 254,640.00)
Adj. (a) 15,840.00
Merchandise Inventory
Adj. (a) 15,840.00
Lesson 17-1, page 423Lesson 17-1, page 423
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BEFORE ADJUSTMENTAFTER ADJUSTMENT
Bal. 6,480.00Bal. 6,480.00
Supplies Expense—Office
(New Bal. 1,750.00)
ADJUSTING ENTRY FOR OFFICE SUPPLIES ADJUSTING ENTRY FOR OFFICE SUPPLIES INVENTORYINVENTORY
Adj. (b) 4,730.00
Supplies Expense—Office
Adj. (b) 4,730.00
Lesson 17-1, page 424Lesson 17-1, page 424
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BEFORE ADJUSTMENTAFTER ADJUSTMENT
Bal. 6,944.00Bal. 6,944.00
ADJUSTING ENTRY FOR STORE SUPPLIES ADJUSTING ENTRY FOR STORE SUPPLIES INVENTORY INVENTORY
Supplies Expense—Store
(New Bal. 3,034.00)
Adj. (c) 3,910.00
Supplies Expense—Store
Adj. (c) 3,910.00
Lesson 17-1, page 424Lesson 17-1, page 424
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BEFORE ADJUSTMENTAFTER ADJUSTMENT
Bal. 5,800.00Bal. 5,800.00
Insurance Expense
(New Bal. 2,630.00)
ADJUSTING ENTRY FOR PREPAID INSURANCEADJUSTING ENTRY FOR PREPAID INSURANCE
Adj. (d) 3,170.00
Prepaid Insurance
Adj. (d) 3,170.00
Lesson 17-1, page 424Lesson 17-1, page 424
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Work Together &Work Together &On Your Own – On Your Own –
Page 425Page 425
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Income Summary
THE INCOME SUMMARY ACCOUNTTHE INCOME SUMMARY ACCOUNT
Lesson 17-2, page 426Lesson 17-2, page 426
DebitTotal expenses
CreditRevenue (greater than expenses)(Credit balance is the net income.)
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CLOSING ENTRY FOR AN INCOME STATEMENT CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCEACCOUNT WITH A CREDIT BALANCE
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3. Debit to Close
1. Heading
4. Credit
2. Date
3
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Lesson 17-2, page 427Lesson 17-2, page 427
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CLOSING ENTRY FOR INCOME STATEMENT CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCESACCOUNTS WITH DEBIT BALANCES
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3. Credit to Close
1. Date
4. Debit Total
2. Account Debited
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3 3
Lesson 17-2, page 428Lesson 17-2, page 428
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(New Bal. 69,615.85)
SUMMARY OF CLOSING ENTRY FOR INCOME SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCESSTATEMENT ACCOUNTS WITH DEBIT BALANCES
Closing (costs and expenses) 337,664.15
Lesson 17-2, page 429Lesson 17-2, page 429
Income Summary
Bal. 189,960.00
Purchases
Bal. 6,600.00
Advertising Expense
Bal. 3,385.00
Credit Card Fee Expense
Bal. 3,170.00
Insurance Expense
Bal. 2,584.15
Miscellaneous Expense
Bal. 9,105.00
Payroll Taxes Expense
Bal. 21,000.00
Rent Expense
Bal. 89,400.00
Salary Expense
Bal. 4,730.00
Supplies Expense—Office
Bal. 3,910.00
Supplies Expense—Store
Bal. 3,820.00
Utilities Expense
Closing (revenue) 423,120.00Adj. (mdse. inv.) 15,840.00
(New Bal. zero)Closing 189,960.00
(New Bal. zero)Closing 6,600.00
(New Bal. zero)Closing 3,385.00
(New Bal. zero)Closing 3,170.00
(New Bal. zero)Closing 2,584.15
(New Bal. zero)Closing 9,105.00
(New Bal. zero)Closing 21,000.00
(New Bal. zero)Closing 89,400.00
(New Bal. zero)Closing 4,730.00
(New Bal. zero)Closing 3,910.00
(New Bal. zero)Closing 3,820.00
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Work Together &Work Together &On Your Own – On Your Own –
Page 430Page 430
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CLOSING ENTRY TO RECORD NET INCOME OR LOSS CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNTAND CLOSE THE INCOME SUMMARY ACCOUNT
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3. Debit to Close
1. Date
2. Account Debited
4. Accounts Credited
5. Credits to Record Net Income
3
Lesson 17-3, page 431Lesson 17-3, page 431
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5. Credits to Record Net Income
CLOSING ENTRIES FOR THE PARTNERS’ DRAWING CLOSING ENTRIES FOR THE PARTNERS’ DRAWING ACCOUNTSACCOUNTS
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3. Debit to Close
1. Date
2. Account Debited
4. Account Credited
3
5
Lesson 17-3, page 432Lesson 17-3, page 432
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COMPLETED CLOSING ENTRIES FOR A COMPLETED CLOSING ENTRIES FOR A PARTNERSHIP RECORDED IN A JOURNALPARTNERSHIP RECORDED IN A JOURNAL
Lesson 17-3, page 433Lesson 17-3, page 433
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Work Together &Work Together &On Your Own – On Your Own –
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POST-CLOSING TRIAL BALANCEPOST-CLOSING TRIAL BALANCE
1. Write the heading.
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2. List accounts that have balances.
3. Write debit balances.
4. Write credit balances.
5. Write the word Totals.
6. Total Debit column.
7. Total Credit column.
8. Verify equality of totals.
9. Rule double lines.
Lesson 17-4, page 437Lesson 17-4, page 437
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ACCOUNTING CYCLE FOR A MERCHANDISING ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZES AS A PARTNERSHIP.BUSINESS ORGANIZES AS A PARTNERSHIP.
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1. Source documents checked for accuracy, and transactions are analyzed.
9. A post-closing trial balance is prepared.
2. Transactions are recorded in a journal.
3. Journal entries are posted to ledgers.
4. Schedules of accounts payable and accounts receivable are prepared from subsidiary ledgers.
5. Work sheet is prepared.6. Financial statements are
prepared.
7. Adjusting and closing entries are journalized.
8. Adjusting and closing entries are posted.
Lesson 17-4, page 438Lesson 17-4, page 438
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Work Together &Work Together &On Your Own – On Your Own –
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