Warr22e_IM_TM_Ch04 - Transparency Master 4-1 STEPS IN THE ACCOUNTING CYCLE Instructions List the following steps in the correct order Financial

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Transparency Master 4-1 STEPS IN THE ACCOUNTING CYCLE Instructions: List the following steps in the cor- rect order. Financial statements prepared. Transactions posted to the ledger. Transactions analyzed and recorded in journal. Trial balance prepared, adjustment data as- sembled, and work sheet completed. Post-closing trial balance prepared. Adjusting entries journalized & posted to ledger.
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Transparency Master 4-2 PURPOSE OF WORK SHEET 1. Tool to assist with end-of-accounting-period work 2. Information to prepare adjusting entries and financial statements on one continuous form 3. Format that is easily adapted to a computer spreadsheet program
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Transparency Master 4-3 WORK SHEET To complete the columns of a work sheet: 1. List all account balances from the ledger in the Trial Balance columns. Total the Debit and Cred- it columns; they should be equal. 2. Record the adjusting entries in the Adjustments columns. Total the Debit and Credit columns; they should be equal. 3. Enter the balance of each account, after comput- ing any changes due to adjusting entries, in the Adjusted Trial Balance columns. Total the Debit and Credit columns; they should be equal. 4. Enter the balance of all revenue and expense ac- counts in the Income Statement columns. Total the debit and credit columns; the difference between these columns is Net Income. 5. Enter the balance of assets, liabilities, capital, and drawings in the Balance Sheet columns. Total the debit and credit columns. Net income must be added to the credit column to make the balance sheet columns balance.
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Transparency Master 4-4 WORK SHEET Enter the following adjusting entries on the work sheet for Dixie Machinery: 1. $375 of the prepaid insurance has expired. 3. Depreciation to be recorded on the office equipment is $400. 4. $350 of salaries are owed to Dixie Machinery’s employees.
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Transparency Master 4-5 Dixie Machinery Work Sheet For the Year Ended December 31, 20— TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash 825 825 Accounts Receivable 300 300 Prepaid Insurance 500 375 125 Office Equipment
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This note was uploaded on 04/20/2010 for the course BUSINESS Accounting taught by Professor Ebiohuche during the Spring '10 term at DeVry Manhattan.

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Warr22e_IM_TM_Ch04 - Transparency Master 4-1 STEPS IN THE ACCOUNTING CYCLE Instructions List the following steps in the correct order Financial

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