Transcript Preparing a Worksheet
Slide 1
Planning
Adjusting Entries
on a Worksheet
Chapter 6, Section 2
Slide 2
Adjustments
Changes to update general ledger accounts
CONCEPT: Matching Expenses with Revenue
Expenses incurred to earn revenue are reported in the
same fiscal period as the revenue is earned and reported.
Worksheet is used to plan adjustments
Slide 3
Supplies Adjustment
Up to this point, we have only recorded the
purchases of new supplies.
We must bring the asset and expense
accounts up-to-date to reflect supplies used.
Example:
Supplies
account balance = $4,751.00
Actual supplies on hand = $2,187.00
Subtract these two numbers to determine
amount of adjustment.
$4,751.00
– 2,187.00 = $2,564.00
Debit Supplies Expense; Credit Supplies for
the amount of the adjustment
Slide 4
Recording the Supplies
Adjustment on the Worksheet
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 a in parentheses, (a).
Slide 5
Insurance Adjustment
We must bring the asset and expense
accounts up-to-date to reflect insurance
used.
Example:
Prepaid
Insurance account balance = $1,200.00
Value of Insurance = $1,100.00
Subtract these two numbers to determine
amount of adjustment.
$1,200.00
– 1,100.00 = $100.00
Debit Insurance Expense; Credit Prepaid
Insurance for the amount of the adjustment
Slide 6
Recording the Insurance
Adjustment on the Worksheet
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 b in parentheses, (b).
Slide 7
Proving the Adjustments
column of the Worksheet
1. Rule a single line.
2. Add both the
Adjustments
Debit and Credit
columns.
3. Rule double lines.
1
2
3
Slide 8
Assignments
Work Together 6-2 (Textbook pg. 161)
On Your Own 6-2 (Textbook pg. 161)
Application 6-2 (Textbook pg. 172)
Planning
Adjusting Entries
on a Worksheet
Chapter 6, Section 2
Slide 2
Adjustments
Changes to update general ledger accounts
CONCEPT: Matching Expenses with Revenue
Expenses incurred to earn revenue are reported in the
same fiscal period as the revenue is earned and reported.
Worksheet is used to plan adjustments
Slide 3
Supplies Adjustment
Up to this point, we have only recorded the
purchases of new supplies.
We must bring the asset and expense
accounts up-to-date to reflect supplies used.
Example:
Supplies
account balance = $4,751.00
Actual supplies on hand = $2,187.00
Subtract these two numbers to determine
amount of adjustment.
$4,751.00
– 2,187.00 = $2,564.00
Debit Supplies Expense; Credit Supplies for
the amount of the adjustment
Slide 4
Recording the Supplies
Adjustment on the Worksheet
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 a in parentheses, (a).
Slide 5
Insurance Adjustment
We must bring the asset and expense
accounts up-to-date to reflect insurance
used.
Example:
Prepaid
Insurance account balance = $1,200.00
Value of Insurance = $1,100.00
Subtract these two numbers to determine
amount of adjustment.
$1,200.00
– 1,100.00 = $100.00
Debit Insurance Expense; Credit Prepaid
Insurance for the amount of the adjustment
Slide 6
Recording the Insurance
Adjustment on the Worksheet
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 b in parentheses, (b).
Slide 7
Proving the Adjustments
column of the Worksheet
1. Rule a single line.
2. Add both the
Adjustments
Debit and Credit
columns.
3. Rule double lines.
1
2
3
Slide 8
Assignments
Work Together 6-2 (Textbook pg. 161)
On Your Own 6-2 (Textbook pg. 161)
Application 6-2 (Textbook pg. 172)