LESSON 16-1 Recording Adjusting Entries ADJUSTING ENTRIES RECORDED FROM A WORK SHEET page 481 1 2 3 ADJUSTING ENTRY FOR MERCHANDISE INVENTORY— Unique entry for a merchandising business page 482 ADJUSTING ENTRY FOR SUPPLIES—OFFICE page 483 ADJUSTING ENTRY FOR SUPPLIES—STORE page 483 ADJUSTING ENTRY FOR PREPAID INSURANCE page 484 ADJUSTING ENTRY FOR DEPRECIATION— page 484 OFFICE EQUIPMENT ADJUSTING ENTRY FOR DEPRECIATION— page 485 STORE EQUIPMENT ADJUSTING ENTRY FOR FEDERAL INCOME page 485 TAXES Audit Your Understanding • When adjusting entries are journalized, why is no source document recorded? • Because the heading Adjusting Entries is recorded in the account title column to explain all of the adjusting entries that follow Worked Together • Aplia.com LESSON 16-2 Recording Closing Entries for Income Statement Accounts CLOSING ENTRY FOR ACCOUNTS WITH CREDIT page 488 BALANCES 3 3 1 2 4 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS page 489 WITH DEBIT BALANCES 3 3 1 2 4 CLOSING ENTRY TO RECORD NET INCOME page 491 CLOSING ENTRY FOR DIVIDENDS page 491 COMPLETED CLOSING ENTRIES FOR A CORPORATION page 492 Audit Your Understanding Where is the information obtained from for journalizing closing entries for revenue, cost, and expenses? • (1) Income statement and balance sheet columns of the worksheet What is the name of the temporary account that is used to summarize the closing entries for revenue, cost, and expenses? • Income Summary Work Together • Aplia.com 16-3 POST-CLOSING TRIAL BALANCE page 496 Audit Your Understanding Which accounts are listed on a post-closing trial balance? • Only the general ledger accounts with balances What is the purpose of preparing a post-closing trial balance? • To prove the equality of debits and credits in the general ledger after posting the adjusting and closing entries Work Together • Aplia.com Single Lady's Ad –Listed in the Atlanta Journal • SINGLE BLACK FEMALE seeks male companionship, ethnicity unimportant. I'm a very good girl who LOVES to play. I love long walks in the woods, riding in your pickup truck, hunting, camping and fishing trips, cozy winter nights lying by the fire. Candlelight dinners will have me eating out of your hand. I'll be at the front door when you get home from work, wearing only what nature gave me. • Call 404-875-6420 and ask for Daisy, I'll be waiting.... Daisey • Over 15,000 men called and found themselves talking to the Atlanta Humane Society. The End!!!!