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## Chapter 8 Completing the Accounting Cycle

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### Completing the Accounting Cycle 8 Chapter 8 Completing the Accounting Cycle | Accounting 1, 7th Edition* – PowerPoint PPT presentation

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Title: Chapter 8 Completing the Accounting Cycle

1
Chapter 8Completing the Accounting Cycle
• 8

2
tutorial guides you through creating a worksheet
and using it to record adjusting entries.For
more detailed instructions, refer to Section 8.2
of the Accounting 1 textbook.
3
a blank worksheet.
4
Adjusting Entries and the Worksheet Record the
header in the familiar who, what, when format ?
5
Adjusting Entries and the Worksheet List all
accounts in order (?), just as you would on a
trial balance.
6
Adjusting Entries and the Worksheet Enter the ?
and ? balances of each ledger account, and ? and
? the trial balance.
7
Adjusting Entries and the Worksheet Some
amounts on the trial balance are out of date.
8
Adjusting Entries and the Worksheet The
Supplies account has a balance of 1480.90.
9
Adjusting Entries and the Worksheet The
Supplies account should have a balance of
526.00, based on supplies that were used up
during the year.
10
Adjusting Entries and the Worksheet The
11
Adjusting Entries and the Worksheet The amount
of supplies used up is an ? (an income statement
account).
12
Adjusting Entries and the Worksheet The amount
of supplies used up is the ? (an income statement
account).
13
Adjusting Entries and the Worksheet The
Worksheet must incorporate these differences.
14
Adjusting Entries and the Worksheet The
Worksheet must incorporate these differences.
This is the first adjustment, so it is labelled
as 1.
15
Adjusting Entries and the Worksheet There are
other adjustments required before the trial
balance is up to date.
16
Adjusting Entries and the Worksheet The Prepaid
Insurance account has a balance of 6564.00.
17
Adjusting Entries and the Worksheet The Prepaid
Insurance account should have a balance of
4070.00, based on insurance that was used up
during the year.
18
Adjusting Entries and the Worksheet The
19
Adjusting Entries and the Worksheet The amount
of insurance used up is an ? (an income statement
account).
20
Adjusting Entries and the Worksheet The amount
of insurance used up is the ? (an income
statement account).
21
Adjusting Entries and the Worksheet The
Worksheet must incorporate these differences.
22
Adjusting Entries and the Worksheet The
Worksheet must incorporate these differences.
This is the second adjustment, so it is labelled
as 2.
23
Adjusting Entries and the Worksheet Late
arriving invoices need to be included.
24
Adjusting Entries and the Worksheet Late
arriving invoices need to be included. The total
of the late invoices is a credit to ? (new
amounts owed).
25
Adjusting Entries and the Worksheet The
Worksheet showing adjustments for Late Arriving
Invoices.
26
Adjusting Entries and the Worksheet The
Worksheet showing adjustments for Late Arriving
Invoices.
27
Adjusting Entries and the Worksheet The
Worksheet showing adjustments for Late Arriving
Invoices.
28
Adjusting Entries and the Worksheet The
Worksheet showing adjustments for Late Arriving
Invoices.
29
Adjusting Entries and the Worksheet The
Worksheet showing adjustments for Late Arriving
Invoices.
30
Adjusting Entries and the Worksheet Unearned
revenue needs to be included.
31
Adjusting Entries and the Worksheet Unearned
revenue needs to be included. Unearned revenue is
a credit to the Unearned Revenue account.
32
Adjusting Entries and the Worksheet The
Revenue.
33
Adjusting Entries and the Worksheet The
Revenue.
34
Adjusting Entries and the Worksheet Once all
35
Adjusting Entries and the Worksheet Next,
transfer ? column. Be sure to account for any
36
Adjusting Entries and the Worksheet Transfer
all Income ? Be sure to account for any
37
Adjusting Entries and the Worksheet ? the
Income Statement and Balance Sheet columns.
38
Adjusting Entries and the Worksheet Calculate
the Net Income (?). Net Income goes in the outer
of the last four columns.
39
Adjusting Entries and the Worksheet Rule and
total the last four columns of the Worksheet.
40
Adjusting Entries and the Worksheet In the case
of a Net Loss, the net loss amounts would go in
the inner of the last four columns.If a company
has a net loss, it means expenses are greater
than revenues. The net loss amounts need to go in
the inner of the last four columns, or the
Worksheet will not balance.