ch04 - Chapter 4-1 Completing the Accounting Cycle ISV...

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Unformatted text preview: Chapter 4-1 Completing the Accounting Cycle ISV Financial Accounting, Sixth Edition Chapter Chapter 4 4 Chapter 4-2 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. Study Objectives Study Objectives Chapter 4-3 Using a Using a Worksheet Worksheet Steps in Steps in preparation preparation Preparing Preparing financial financial statements statements Preparing Preparing adjusting entries adjusting entries Closing the Closing the Books Books Summary of Summary of Accounting Accounting Cycle Cycle Classified Classified Balance Sheet Balance Sheet Current assets Current assets Long-term Long-term investments investments Property, plant, Property, plant, and equipment and equipment Intangible assets Intangible assets Current liabilities Current liabilities Long-term Long-term liabilities liabilities Stockholders’ Stockholders’ equity equity Reversing Reversing entries—An entries—An optional step optional step Correcting Correcting entries—An entries—An avoidable step avoidable step Completing the Accounting Cycle Completing the Accounting Cycle Preparing Preparing closing entries closing entries Posting closing Posting closing entries entries Preparing a Preparing a post-closing trial post-closing trial balance balance Chapter 4-4 A multiple-column form used in preparing financial statements. Not a permanent accounting record. Five step process. Use of worksheet is optional. Using A Worksheet Using A Worksheet SO 1 Prepare a worksheet. SO 1 Prepare a worksheet. Worksheet Worksheet Chapter 4-5 Steps in Preparing a Worksheet Steps in Preparing a Worksheet SO 1 Prepare a worksheet. SO 1 Prepare a worksheet. Illustration 4-1 Chapter 4-6 SO 1 Prepare a worksheet. SO 1 Prepare a worksheet. PIONEER ADVERTISING AGENCY INC. Trial Balance October 31, 2008 Account Debit Credit Cash $ 15,200 Advertising Supplies 2,500 Prepaid Insurance 600 Office Equipment 5,000 Notes Payable $ 5,000 Accounts Payable 2,500 Unearned Revenue 1,200 Common Stock 10,000 Retained Earnings-0- Dividends 500 Service Revenue 10,000 Salaries Expense 4,000 Rent Expense 900 $ 28,700 $ 28,700 Illustration The trial balance for Pioneer Advertising Inc. for the month ended October 31, 2008, is as follows. Steps in Preparing a Worksheet Steps in Preparing a Worksheet Other data: (a) Supplies Used. (b) Insurance Expired. (c) Depreciation Expensed. (d) Service Revenue Earned....
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This note was uploaded on 03/10/2011 for the course ACCOUNTING acct101 taught by Professor Loons during the Spring '08 term at Uni Konstanz.

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ch04 - Chapter 4-1 Completing the Accounting Cycle ISV...

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