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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

CHAPTER 16-RECORDING ADJUSTING CHAPTER 16-RECORDING ADJUSTING AND CLOSING ENTRIES FOR A AND CLOSING ENTRIES FOR A

CORPORATIONCORPORATION

OBJECTIVESOBJECTIVES: IDENTIFY ACCOUNTING CONCEPTS RECORD ADJUSTING ENTRIES RECORD CLOSING ENTRIES FOR INCOME

STATEMENT ACCOUNTS RECORD CLOSING ENTRY FOR DIVIDENDS PREPARE A POST-CLOSING TRIAL BALANCE

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 16-1LESSON 16-1

Recording Adjusting Entries

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRIES RECORDED ADJUSTING ENTRIES RECORDED FROM A WORK SHEETFROM A WORK SHEET

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1. Heading

2. Date

3. Identify the first adjustment

4. Account debited

5. Debit

6. Account credited

7. Credit

8. Continue down the Adjustments columns

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRY FOR ALLOWANCE ADJUSTING ENTRY FOR ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTSFOR UNCOLLECTIBLE ACCOUNTS page 482

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRY FOR ADJUSTING ENTRY FOR MERCHANDISE INVENTORYMERCHANDISE INVENTORY page 482

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRY FOR SUPPLIESADJUSTING ENTRY FOR SUPPLIES——OFFICEOFFICE page 483

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ADJUSTING ENTRY FOR SUPPLIESADJUSTING ENTRY FOR SUPPLIES——STORESTORE page 483

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRY FOR ADJUSTING ENTRY FOR PREPAID INSURANCEPREPAID INSURANCE page 484

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRY FOR DEPRECIATIONADJUSTING ENTRY FOR DEPRECIATION——OFFICE EQUIPMENTOFFICE EQUIPMENT page 484

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRY FOR DEPRECIATIONADJUSTING ENTRY FOR DEPRECIATION——STORE EQUIPMENTSTORE EQUIPMENT page 485

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-1

ADJUSTING ENTRY FOR FEDERAL ADJUSTING ENTRY FOR FEDERAL INCOME TAXESINCOME TAXES page 485