accruals, deferrals, and the worksheet

2. Chapter 11 discussed employer payroll taxes and insurance premiums for workers� compensation, as well as how and when to file the required tax Section 2 and Objective 4 of the chapter involve completing a ten-column worksheet.Chapter 11 discussed employer payroll taxes and insurance premiums for workers� compensation, as well as how and when to file the required tax Section 2 and Objective 4 of the chapter involve completing a ten-column worksheet.

3. It is now time to enter our adjustments on the worksheet. It is now time to enter our adjustments on the worksheet.

4. After entering the Trial balance on the worksheet, the adjustments are entered in the adjustments columns, then it is time to carry over the balances to the adjusted trial balance columns.After entering the Trial balance on the worksheet, the adjustments are entered in the adjustments columns, then it is time to carry over the balances to the adjusted trial balance columns.

5. Let�s review how to prepare the adjusted trial balance on the worksheet.Let�s review how to prepare the adjusted trial balance on the worksheet.

6. Recall these rules. . .Recall these rules. . .

7. Carry the adjusted balance of $79,990 in the Salaries Expense-Sales account to the adjusted trial balance.Carry the adjusted balance of $79,990 in the Salaries Expense-Sales account to the adjusted trial balance.

8. Carry the adjusted Supplies account balance of $1,325 to the adjusted trial balance.Carry the adjusted Supplies account balance of $1,325 to the adjusted trial balance.

9. Carry the adjusted balance of the Sales Tax Payable account, $6984 to the adjusted trial balance credit column.Carry the adjusted balance of the Sales Tax Payable account, $6984 to the adjusted trial balance credit column.

10. Both the beginning and ending balances in the Merchandise Inventory accounts need to be seen in the Income Summary account on the adjusted trial balance. Do not combine the two numbers. They will both be needed when we prepare the income statement.Both the beginning and ending balances in the Merchandise Inventory accounts need to be seen in the Income Summary account on the adjusted trial balance. Do not combine the two numbers. They will both be needed when we prepare the income statement.

11. The debits must equal the credits on the adjusted trial balance before moving to the next set of columns on the worksheet.The debits must equal the credits on the adjusted trial balance before moving to the next set of columns on the worksheet.

12. It is now time to prepare the Balance Sheet and Income Statement Sections. It is now time to prepare the Balance Sheet and Income Statement Sections.

13. Assets, liability, owner�s capital and the owner�s drawing account are carried to the balance sheet section.Assets, liability, owner�s capital and the owner�s drawing account are carried to the balance sheet section.

14. Extend assets, liabilities, owner�s capital and the drawing account to the balance sheet section.Extend assets, liabilities, owner�s capital and the drawing account to the balance sheet section.

15. Extend all revenues and expense accounts to the income statement section.Extend all revenues and expense accounts to the income statement section.

16. In addition, the Income Summary account and its debit and credit amounts are also transferred to the Income statement columns.In addition, the Income Summary account and its debit and credit amounts are also transferred to the Income statement columns.

17. Next, we need to calculate net income or net loss.Next, we need to calculate net income or net loss.

18. Once all account balances have been entered in the financial statement sections of the worksheet, the net income or net loss for the period is determined. Once all account balances have been entered in the financial statement sections of the worksheet, the net income or net loss for the period is determined.

19. Foot the income statement columns.Foot the income statement columns.

20. Figure Net income amount and balance the income statement columns.Figure Net income amount and balance the income statement columns.

21. Finish the Balance sheet section last.Finish the Balance sheet section last.

22. Net income is recorded in two places on the net income line of the worksheet.Net income is recorded in two places on the net income line of the worksheet.

23. Let�s review. . .Let�s review. . .