Chapter 4_Lecture_Summer_2010

Chapter 4_Lecture_Summer_2010 - 1. Prepare a worksheet. 2....

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Unformatted text preview: 1. Prepare a worksheet. 2. Explain the process of closing the books. 3. Describe the content and purpose of a post-closing trial balance. 4. State the required steps in the accounting cycle. 5. Explain the approaches to preparing correcting entries. 6. Identify the sections of a classified balance sheet. Chapter 4 Study Objectives Chapter 4 Study Objectives A multiple-column form used in preparing financial statements. Not a permanent accounting record - adjustments are journalized and posted from the work sheet after financial statements are prepared. Five step process. Use of worksheet is optional. Using A Worksheet Using A Worksheet Worksheet Steps in Preparing a Worksheet Steps in Preparing a Worksheet Illustration The trial balance for Undercover Roofing for the month ended March 31, 2008, is as follows. Steps in Preparing a Worksheet Steps in Preparing a Worksheet Account Titles Dr. Cr. Cash 2,500 $ Accounts Receivable 1,800 Roofing Supplies 1,100 Equipment 6,000 Accumulated Depreciation 1,200 $ Accounts Payable 1,400 Unearned Revenue 300 Common stock 1,000 Retained earnings 6,000 Dividends 600 Service Revenue 3,000 Salaries Expense 700 Miscellaneous Expense 200 Totals 12,900 $ 12,900 $ Trial Balance Other data: 1. Supplies on hand total $140. 2. Depreciation for March is $200. 3. Unearned revenue amounted to $130 on March 31. 4. Accrued salaries are $350. Instructions a. Prepare and complete the worksheet. Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 2,500 Accounts Receivable 1,800 Roofing Supplies 1,100 Equipment 6,000 Accumulated Depreciation 1,200 Accounts Payable 1,400 Unearned Revenue 300 Common stock 1,000 Retained earnings 6,000 Dividends 600 Service Revenue 3,000 Salaries Expense 700 Miscellaneous Expense 200 Totals 12,900 12,900 Balance Sheet Adjusted Income Trial Balance Adjustments Trial Balance Statement Steps in Preparing a Worksheet Steps in Preparing a Worksheet Trial balance amounts come directly from ledger accounts. Include all accounts with balances. 1. Prepare a Trial Balance on the Worksheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 2,500 Accounts Receivable 1,800 Roofing Supplies 1,100 960 Equipment 6,000 Accumulated Depreciation 1,200 200 Accounts Payable 1,400 Unearned Revenue 300 170 Common stock 1,000 Retained earnings 6,000 Dividends 600 Service Revenue 3,000 170 Salaries Expense 700 350 Miscellaneous Expense 200 Totals 12,900 12,900 Supplies Expense 960 Depreciation Expense 200 Salaries Payable 350 Totals 1,680 1,680 Net Income Totals Balance Sheet Adjusted Income Trial Balance Adjustments Trial Balance Statement Steps in Preparing a Worksheet Steps in Preparing a Worksheet (a) (a) (b) (b) (d) (d) (c) (c) Enter adjustment amounts, total adjustments columns, and check for equality....
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Chapter 4_Lecture_Summer_2010 - 1. Prepare a worksheet. 2....

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