Preparing a Worksheet

Download Report

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)