Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.
-
Upload
anissa-gladman -
Category
Documents
-
view
235 -
download
0
Transcript of Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.
![Page 1: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/1.jpg)
Planning Adjusting
Entries on a Worksheet
Chapter 6, Section 2
![Page 2: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/2.jpg)
Adjustments
Changes to update general ledger accounts
CONCEPT: Matching Expenses with Revenue
Expenses incurred to earn revenue are reported in the same fiscal period as the revenue is earned and reported.
Worksheet is used to plan adjustments
![Page 3: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/3.jpg)
Supplies Adjustment
Up to this point, we have only recorded the purchases of new supplies.
We must bring the asset and expense accounts up-to-date to reflect supplies used.
Example: Supplies account balance = $4,751.00 Actual supplies on hand = $2,187.00
Subtract these two numbers to determine amount of adjustment. $4,751.00 – 2,187.00 = $2,564.00
Debit Supplies Expense; Credit Supplies for the amount of the adjustment
![Page 4: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/4.jpg)
Recording the Supplies Adjustment on the Worksheet
1
2
3. Label the two parts of this adjustment with a small letter a in parentheses, (a).
1. Write the debit amount.
2. Write the credit amount.
3
![Page 5: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/5.jpg)
Insurance Adjustment
We must bring the asset and expense accounts up-to-date to reflect insurance used.
Example: Prepaid Insurance account balance = $1,200.00 Value of Insurance = $1,100.00
Subtract these two numbers to determine amount of adjustment. $1,200.00 – 1,100.00 = $100.00
Debit Insurance Expense; Credit Prepaid Insurance for the amount of the adjustment
![Page 6: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/6.jpg)
Recording the Insurance Adjustment on the Worksheet
1
2
3. Label the two parts of this adjustment with a small letter b in parentheses, (b).
1. Write the debit amount.
2. Write the credit amount.
3
![Page 7: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/7.jpg)
Proving the Adjustments column of the Worksheet
12
3. Rule double lines.
1. Rule a single line.
2. Add both the Adjustments Debit and Credit columns.
3
![Page 8: Planning Adjusting Entries on a Worksheet Chapter 6, Section 2.](https://reader038.fdocuments.us/reader038/viewer/2022102702/56649c8f5503460f949485fc/html5/thumbnails/8.jpg)
Assignments
Work Together 6-2 (Textbook pg. 161)
On Your Own 6-2 (Textbook pg. 161)
Application 6-2 (Textbook pg. 172)