Adjustments and Closing Entries
for a Corporation
JEOPARDY
Adjustments & Closing for a
Corporation
Financial
Statements
Adjusting
Entries
Closing
Entries
Post Closing
Trial Balance
Vocabulary
GRAB BAG
100
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200
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Financial Statements - 100
 The income statement of a
merchandising business has three
main sections…
what is . . . Revenue, Cost of
Merchandise Sold and Expenses
Financial Statements - 200
 A financial statement that shows
changes in a corporation’s
ownership for a fiscal period
what is . . .
Equity
A statement of Owner’s
Financial Statements - 300
 The two sections in a statement of
stockholders’ equity
what are . . . Capital Stock &
Retained Earnings
Financial Statements - 400
 Calculation for the book value of
Accounts receivable
What is . . .
Accounts receivable less
Allowance for Uncollectible Accounts
Financial Statements - 500
 Two classifications of Assets for our
Merchandising Balance sheet
what are . . .
Current Assets and Plant Assets
Financial Statements - 600
 A value assigned to a share of
stock and printed on the stock
certificate is called 
what is . . . Par Value
Adjusting Entries - 100
 The purpose of adjusting entries
what is . . . Bring the general ledger
account balances up to date.
Adjusting Entries - 200
 Which accounting concept relates to the
adjusting entry procedure
what is . . . Matching revenue with
expenses
Adjusting Entries - 300
 Company ABC estimated that 2,000 will
be uncollectible; the adjusting entry…
what is . . . DR Uncollectible Accts.
Expense, CR Allowance for
Uncoll. Accts
Adjusting Entries - 400
 Adjusting Entry for Merchandise
Inventory when the count at year end is
lower… 
what is . . . Dr. Income Summary. Cr.
Merchandise Inventory
Adjusting Entries - 500
 Adjusting entry for depreciation
store Equip…
what is . . . Dr Depreciation Expense,
Cr Accum. Depre – Store Equip
Adjusting Entries - 600
 The balance in supplies prior to
adjustments is 3,480. Supplies on hand
is 750
what is . . . Dr Supplies Expense and Cr Supplies
Office $2,730
Closing Entries - 100
 This account is used only at the end of the
fiscal period to help prepare accounts for
a new fiscal period.
what is . . . Income Summary Account
Closing Entries - 200
 Assets, Liability and Owner’s Capital
Accounts
what is . . . Permanent or Real
Accounts
Closing Entries - 300
 The first step to the closing process
what is . . . Close income statement
accounts with credit balances (Sales,
Purchase Discounts, Purchases R & A)
Closing Entries - 400
 The third step in the closing process
what is . . . Closing entry to record
net income (or loss); zero out
income summary
Closing Entries - 500
 The fourth step in the closing process
what is . . . Closing entry for
dividends. (Dr retained earnings,
Cr dividends)
Closing Entries - 600
 Four steps to close the temporary
accounts 
what are . . . Close Income statement account Cr
balances; Close Income statement account Dr
balances; Close Income Summary (record profit
or loss); Close Dividends
Post Closing Trial - 100
 These accounts have up to date
balances to begin the new fiscal period.
what are . . . Balance sheet accounts (A, L, OE)
Post Closing Trial - 200
 These accounts have zero balances to
begin the new fiscal period.
what are . . . Temporary accounts
(Revenue, Cost and Expense
Accounts)
Post Closing Trial - 300
 This is prepared to prove the equality of
debits and credits in the general ledger
and to prepare the GL for the next fiscal
period.
what is . . . Post Closing Trial
Balance
Post Closing Trial - 400
 The supporting reports prepared
for the balance sheet. 
what are . . . Schedule of Accounts
Receivable and Accounts
Payable
Post Closing Trial - 500
 The normal balance of Capital Stock
what is . . . Credit
Post Closing Trial - 600
 The normal balance of
Merchandise Inventory
what is . . . Debit
Vocab/Concepts - 100
 A comparison between two items of
financial information
what is . . . A financial ratio
Vocab/Concepts - 200
 The amount of net income after
federal income tax belonging to a
single share of stock
what is . . . Earnings Per Share
Vocab/Concepts - 300
 The relationship between the
market value per share and
earnings per share 
what is . . . Price-earnings ratio
Vocab/Concepts - 400
 The two contra accounts for Sales
what are . . . Sales discounts and Sales
Return and allowance.
Vocab/Concepts - 500
 The normal balance for an Income
Summary Account
what is . . . Zero
Vocab/Concepts - 600
 Companies with a high price-earnings
ratio 
what are . . . Growth Companies
GRAB BAG - 100
 The financial statements should provide
information about a business’s financial
condition, changes in this financial
condition and the progress of operations
what is . . . Adequate Disclosure
GRAB BAG - 200
 Financial information must be reported
the same way from one fiscal period to
the next
what is . . . Consistent Reporting
GRAB BAG - 300
 A source document is prepared for each
transaction.
what is . . . Objective Evidence
GRAB BAG - 400
 The amount an owner expects to
receive when a plant asset is
removed from use 
what is . . . Estimated salvage value
GRAB BAG - 500
 The total amount of depreciation
expense that has been recorded since
the purchase of a plant asset
what is . . . Accumulated depreciation
GRAB BAG - 600
 The special journal used to record sales
on account.
what is . . . Sales Journal
Final Jeopardy
 Calculate Total Cost of
Merchandise Available for Sale
Merchandise Inventory 1/1
140,480.00
Net Purchases
204, 826.90
Merchandise Inventory 12/31
124, 640.00
Purchases Discounts
1, 648.15