1 / 20

Accounting I

Accounting I. Chapter 9 – Recording Adjusting & Closing Entries for a Service Business. T ERMS REVIEW. adjusting entries permanent accounts temporary accounts closing entries. Lesson 9-2, page 209. T ERMS REVIEW. Adjusting Entries.

jdow
Download Presentation

Accounting I

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Accounting I Chapter 9 – Recording Adjusting & Closing Entries for a Service Business

  2. TERMS REVIEW adjusting entries permanent accounts temporary accounts closing entries Lesson 9-2, page 209

  3. TERMS REVIEW Adjusting Entries Journal entries recorded to update general ledger accounts at the end of a fiscal period. Lesson 9-1, page 198

  4. TERMS REVIEW Permanent Accounts Accounts used to accumulate information from one fiscal period to the next. Lesson 9-2, page 203

  5. TERMS REVIEW Temporary Accounts Accounts used to accumulate information until it is transferred to the owner’s capital account. Lesson 9-2, page 203

  6. TERMS REVIEW Closing Entries Journal entries used to prepare temporary accounts for a new fiscal period. Lesson 9-2, page 203

  7. 3 4 ADJUSTING ENTRY FOR SUPPLIES 1 2 1. Write the heading. 2. Write the date. 3. Record the debit. 4. Record the credit. Lesson 9-1, page 200

  8. 2 3 ADJUSTING ENTRY FOR PREPAID INSURANCE 1 1. Write the date. 2. Record the debit. 3. Record the credit. Lesson 9-1, page 201

  9. Work Together & On Your Own – Page 202

  10. 3 (Debit to close) 4 CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE 1 2 1. Write the heading. 2. Write the date. 3. Record the debit. 4. Record the credit. Lesson 9-2, page 205

  11. (Credit to close) 3 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1. Write the date. 2. Income Summary. 3. Record the credit. 4. Record the debit. 2 4 1 Lesson 9-2, page 206

  12. (Capital: credit to record net income) (Income Summary: debit to close) 2 3 CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT 1 1. Write the date. 2. Record the debit. 3. Record the credit. Lesson 9-2, page 207

  13. (Capital: credit to close) 2 3 CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT 1 1. Write the date. 2. Record the debit. 3. Record the credit. Lesson 9-2, page 208

  14. Work Together & On Your Own – Page 209

  15. TERMS REVIEW post-closing trial balance accounting cycle Lesson9-3, page 215

  16. TERMS REVIEW Post-Closing Trial Balance A trial balance prepared after the closing entries are posted. Lesson 9-3, page 213

  17. TERMS REVIEW Accounting Cycle The series of accounting activities included in recording financial information for a fiscal period. Lesson 9-3, page 214

  18. 3 5 7 POST-CLOSING TRIAL BALANCE 1. Write the heading. 1 2. Write titles of all general ledger accounts with balances in the Account Title column. 2 3. Write each account’s balance. 4 6 8 4. Rule a single line. 5. Compare the two column totals. 6. Write Totals. 7. Write the column totals. 8. Rule double lines. Lesson 9-3, page 213

  19. ACCOUNTING CYCLE FOR A SERVICE BUSINESS 1. Source documents checked for accuracy, and transactions are analyzed. 1 2 2. Transactions are recorded in a journal. 8 3. Journal entries are posted to the general ledger. 3 4. Work sheet is prepared. 5. Financial statements are prepared. 7 4 6. Adjusting and closing entries are journalized. 6 7. Adjusting and closing entries are posted. 5 8. A post-closing trial balance is prepared. Lesson 9-3, page 214

  20. Work Together & On Your Own – Page 215

More Related