Adjusting Entries and the Worksheet by G2iv1V

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									Adjusting Entries and the
Worksheet
8 Column Worksheet
 We are now going to be adding two
  more columns to the 6 column
  worksheet under adjustments.
 Please see pg. 310 for an example
Supplies
 To adjust for supplies used, we make the
  following adjusting entry:
Supplies Expense            954.90
     Supplies                          954.90
 This adjustment gets recorded onto the 8
  column worksheet as shown in figure 9.3,
  pg 312.
 Note that if there is no supplies expense
  account, we must make one on the next
  available line on the worksheet.
Prepaid Insurance and Late
Purchase Invoices
 Are adjusted on the worksheet in the
  same way
 If there are no expense accounts, we
  add them to the bottom
Extending the Worksheet
 We then must extend the adjustment
   columns into the last four columns of the
   worksheet as follows:
1. Evaluate each item in the first four
   columns. You may have to add or subtract
   depending on what is contained in the
   adjustments columns.
2. Transfer the value found in step 1 above to
   one of the last four columns of the
   worksheet. Either to income statement or
   balance sheet, debits as debits and credits
   as credits.
Balancing the Worksheet
 Same as before:
Step 1 – Total the last four columns
Step 2 – Determine the difference
  between the income statement
  columns and the two balance sheet
  columns
Step 3 – Ensure that the two totals in
  step 2 are the same
Journalizing and Posting Adjusting
Entries
 Once we have put the information
  onto the worksheet, we must make
  sure to journalize and post the
  adjusting entries.
 They can be done as individual
  entries or all together under the
  heading “adjusting entries

								
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