Balance income statement chapter 3 42 lo 7 lo

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Unformatted text preview: est Expense Debit Interest Payable Credit Debit Int Pay 50 Chapter 3-39 50 Credit Int Exp50 LO 6 LO Prepare adjusting entries for accruals. Prepare Adjusting Entries for “Accrued Expenses” Adjusting Entries for “Accrued Expenses” Accrued Expenses An adjusting entry serves two purposes: (1) It records the obligations, and (2) it recognizes the expenses. Chapter 3-40 LO 6 LO Prepare adjusting entries for accruals. Prepare The Adjusted Trial Balance The Adjusted Trial Balance After all adjusting entries are journalized and posted the company prepares another trial balance from the ledger accounts (Adjusted Trial Balance). Its purpose is to prove the equality of debit balances and credit balances in the ledger. Chapter 3-41 LO 7 LO Describe the nature and purpose of an adjusted trial balance. Describe Preparing Financial Statements Preparing Financial Statements Financial Statements are prepared directly from the Adjusted Trial Financial Statements are prepared directly from the Adjusted Trial Balance. Balance. Income Statement Chapter 3-42 LO 7 LO Retained Earnings Statement Balance Sheet Statement of Cash Flows Describe the nature and purpose of an adjusted t...
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