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Chapter 8. Recording Adjusting and Closing Entries. 21. Adjusting Entries. Adjusting entries – journal entries recorded to update general ledger accounts at the end of a fiscal period. 3. 4. ADJUSTING ENTRY FOR SUPPLIES. page 202. 1.Write the heading. 2.Write the date. - PowerPoint PPT Presentation
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Recording Adjusting and Closing Entries
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Adjusting entries – journal entries recorded to update general ledger accounts at the end of a fiscal period
3 LESSON 8-1
11
22
page 202
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4. Write the title of the account credited. Record the credit amount.
3. Write the title of the account debited. Record the debit amount.
2. Write the date.
1. Write the heading.
4 LESSON 8-1
page 204
1122
33
3. Write the title of the account credited. Record the credit amount.
2. Write the title of the account debited. Record the debit amount.
1. Write the date.
5
Permanent accounts – accounts used to accumulate information from one fiscal period to the next (aka Real accounts)
Ex: Assets, liabilities, and owner’s capital
Temporary accounts – accounts used to accumulate information until it is transferred to the owner’s capital account (aka Nominal accounts)
Ex: Revenue, expenses, drawing, and income summary
Closing entries – journal entries used to prepare temporary accounts for a new fiscal period
6 LESSON 8-2
page 207
7 LESSON 8-2
page 208
1122 33
441. Write the heading.
2. Write the date.
3. Write the title of the account debited. Record the debit amount.
4. Write the title of the account credited. Record the credit amount.
8 LESSON 8-2
page 209
11 22 44
4. Debit amount3. Credit2. Income Summary1. Date
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9 LESSON 8-2
page 210
3. Credit
2. Debit
1. Date
11 22
33
10 LESSON 8-2
page 211
3. Credit
2. Debit
1. Date
11 22
33
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Post-closing trial balance – a trial balance prepared after the closing entries are posted
Accounting cycle – the series of accounting activities included in recording financial information for a fiscal period
12 LESSON 8-3
page 213
13 LESSON 8-3
8. Double rule
7. Record totals
6. Totals
5. Compare totals
4. Single rule
3. Account balances
2. Account titles
1. Heading 11
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page 216
22 33
7755
88
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14 LESSON 8-3
page 217
22
33
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5566
11
77
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8. Prepare post-closing trial balance
7. Post adjusting and closing entries
6. Journalize adjusting and closing entries
5. Prepare financial statements
4. Prepare work sheet
3. Post
2. Journalize
1. Analyzes transactions
