CENTURY 21 ACCOUNTING © Thomson/South-Western 1 LESSON 15 TERM REVIEW merchandise inventory page...
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Transcript of CENTURY 21 ACCOUNTING © Thomson/South-Western 1 LESSON 15 TERM REVIEW merchandise inventory page...
CENTURY 21 ACCOUNTING © Thomson/South-Western
1
LESSON 15
TERM REVIEWTERM REVIEW
merchandise inventory
page 418
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 15-2LESSON 15-2
Beginning an 8-Column Work Sheet for a Merchandising Business
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
RECORDING A TRIAL BALANCE ON A RECORDING A TRIAL BALANCE ON A WORK SHEETWORK SHEET Page 374
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221. Account title2. Account balance3. Total, prove, and
rule the debit and credit columns
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
ANALYZING AND RECORDING SUPPLIES ANALYZING AND RECORDING SUPPLIES ADJUSTMENTSADJUSTMENTS page 376
Adj. (a) 2,730.00Supplies Expense—Office
Dec. 31 Bal. 3,480.00 Adj. (a) 2,730.00(Adj Bal. 750.00)
Supplies—Office
Adj. (b) 2,910.00Supplies Expense—Store
Dec. 31 Bal. 3,944.00 Adj. (b) 2,910.00(Adj Bal. 1,034.00)
Supplies—Store
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 15-1LESSON 15-1
Planning and Recording a Merchandise Inventory Adjustment
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
MERCHANDISE INVENTORYMERCHANDISE INVENTORY page 376
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
ANALYZING AND RECORDING A MERCHANDISE ANALYZING AND RECORDING A MERCHANDISE INVENTORY ADJUSTMENTINVENTORY ADJUSTMENT
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page 378
1. Write the debit amount.
3. Label the two parts of this adjustment with a small letter d in parentheses.
2. Write the credit amount.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
ANALYZING AN ADJUSTMENT WHEN ENDING ANALYZING AN ADJUSTMENT WHEN ENDING MERCHANDISE INVENTORY IS GREATER THAN MERCHANDISE INVENTORY IS GREATER THAN BEGINNING MERCHANDISE INVENTORYBEGINNING MERCHANDISE INVENTORY page 378
Jan. 1 Bal. 294,700.00Adj. (d) 4,200.00(New Bal. 298,900.00)
Merchandise Inventory
Adj. (d) 4,200.00Income Summary
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
RECORDING SUPPLIES ADJUSTMENTS RECORDING SUPPLIES ADJUSTMENTS ON A WORK SHEETON A WORK SHEET
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1. Write the debit amounts in the Adjustments Debit column.2. Write the credit amounts in the Adjustments Credit column.3. Label the two parts of the Supplies—Office adjustment with small letter
a and small letter b in parentheses.
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CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
ANALYZING AND RECORDING A PREPAID ANALYZING AND RECORDING A PREPAID INSURANCE ADJUSTMENTINSURANCE ADJUSTMENT
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1. Enter the amount of insurance used in the Adjustments Credit column.
2. Enter the same amount in the Adjustments Debit column.
3. Label the two parts of the adjustment with a small letter c in parentheses.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
Extending NumbersExtending Numbers
Assets, Liabilities, and Owner’s Equity Accounts are extended to the Balance Sheet Section Make sure to calculate adjusted accounts Cash to Dividends
Revenue and Expenses are extended to the Income Statement section Income Summary to Federal Income Tax Expense.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
COMPLETING A WORK SHEETCOMPLETING A WORK SHEET
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page 430
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1. Total the Income Statement and Balance Sheet columns.
5. Rule double lines.4. Calculate the column totals.3. Extend the net income amount.2. Calculate and enter the net income after federal income tax.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
A COMPLETED 8-COLUMN A COMPLETED 8-COLUMN WORK SHEETWORK SHEET
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 15
A 10-COLUMN WORK SHEETA 10-COLUMN WORK SHEET
1. Trial balance
4466
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5. Extend balances2. Adjustments3. Extend adjusted balances4. Total, prove, and rule
6. Calculate net income; total, prove and rule
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