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TTERMS REVIEWERMS REVIEW
InventoryInventory
The amount of goods on hand.
Lesson 15-1, page 368Lesson 15-1, page 368
TTERMS REVIEWERMS REVIEW
Merchandise InventoryMerchandise Inventory
The amount of goods on hand for sale to customers.
Lesson 15-1, page 368Lesson 15-1, page 368
33. Total, prove, and rule
the debit and credit columns.
1. Write the titles of the general ledger accounts.
2. Write the balance of each account.
1
1 2
2
TRANSFERRING GENERAL TRANSFERRING GENERAL LEDGER ACCOUNT BALANCES LEDGER ACCOUNT BALANCES TO A WORK SHEETTO A WORK SHEET
RECORDING A TRIAL RECORDING A TRIAL BALANCE ON A WORK SHEETBALANCE ON A WORK SHEET
Lesson 15-1, page 366-368Lesson 15-1, page 366-368
PLANNING ADJUSTMENTS ON A WORK SHEETPLANNING ADJUSTMENTS ON A WORK SHEET
Jan. 1 Bal. 270,480.00
Merchandise Inventory
Debit Credit
Merchandise Inventory
Lesson 15-1, page 368Lesson 15-1, page 368
BEFORE ADJUSTMENTSAFTER ADJUSTMENTS
Income Summary
Jan 1 Bal. 270,480.00Jan 1 Bal. 270,480.00(New Bal. 254,640.00)
ANALYZING A MERCHANDISE INVENTORY ANALYZING A MERCHANDISE INVENTORY ADJUSTMENTADJUSTMENT
Adj. (a) 15,840.00
Merchandise Inventory
Adj. (a) 15,840.00
Lesson 15-1, page 369Lesson 15-1, page 369
RECORDING A MERCHANDISE INVENTORY RECORDING A MERCHANDISE INVENTORY ADJUSTMENTADJUSTMENT
1
2
3. Label the two parts of this adjustment.
1. Write the debit amount.
2. Write the credit amount.
3
Lesson 15-1, page 370Lesson 15-1, page 370
ANALYZING AN ADJUSTMENT WHEN ENDING ANALYZING AN ADJUSTMENT WHEN ENDING MERCHANDISE INVENTORY IS GREATER THAN MERCHANDISE INVENTORY IS GREATER THAN BEGINNING MERCHANDISE INVENTORYBEGINNING MERCHANDISE INVENTORY
AFTER ADJUSTMENT
Income Summary
Jan 1 Bal. 294,700.00Adj. (a) 4,200.00
Merchandise Inventory
Adj. (a) 4,200.00
Lesson 15-1, page 370Lesson 15-1, page 370
(New Bal. 298,900.00)
BEFORE ADJUSTMENTAFTER ADJUSTMENT
Dec. 31 Bal. 6,480.00Dec. 31 Bal. 6,480.00
Supplies Expense—Office
(New Bal. 1,750.00)
ANALYZING A SUPPLIES ADJUSTMENTANALYZING A SUPPLIES ADJUSTMENT
Adj. (b) 4,730.00
Supplies—Office
Adj. (b) 4,730.00
Lesson 15-2, page 373Lesson 15-2, page 373
RECORDING SUPPLIES ADJUSTMENTSRECORDING SUPPLIES ADJUSTMENTS
1
3
3
2
3. Label the two parts of this adjustment.
1. Write the debit amounts.
2. Write the credit amounts.
Lesson 15-2, page 374Lesson 15-2, page 374
BEFORE ADJUSTMENTAFTER ADJUSTMENT
Dec 31 Bal. 5,800.00Dec 31 Bal. 5,800.00
Insurance Expense
(New Bal. 2,630.00)
ANALYZING A PREPAID INSURANCE ADJUSTMENTANALYZING A PREPAID INSURANCE ADJUSTMENT
Adj. (d) 3,170.00
Prepaid Insurance
Adj. (d) 3,170.00
Lesson 15-2, page 375Lesson 15-2, page 375
RECORDING A PREPAID INSURANCE ADJUSTMENTRECORDING A PREPAID INSURANCE ADJUSTMENT
13
32
3. Label the two parts of this adjustment.
1. Write the debit amount.
2. Write the credit amount.
Lesson 15-2, page 376Lesson 15-2, page 376
4. Calculate net income or net loss.
5. Extend net income or net loss to Balance Sheet Debit or Credit column.
1. Extend balance sheet items to Balance Sheet columns.
2. Extend income statement items to Income Statement columns.
COMPLETING AN 8-COLUMN WORK SHEETCOMPLETING AN 8-COLUMN WORK SHEET
2 1
3. Total Income Statement and Balance Sheet columns.
6. Total Income Statement and Balance Sheet columns.
7. Check that totals are in balance.
43
5
6 7 Lesson 15-3, page 378Lesson 15-3, page 378
A 10-COLUMN WORK SHEET FOR A MERCHANDISING A 10-COLUMN WORK SHEET FOR A MERCHANDISING BUSINESS (LEFT PAGE)BUSINESS (LEFT PAGE)
1. Record the trial balance.
2. Plan the adjustments.1 2
Lesson 15-3, page 382Lesson 15-3, page 382
A 10-COLUMN WORK SHEET FOR A MERCHANDISING A 10-COLUMN WORK SHEET FOR A MERCHANDISING BUSINESS (RIGHT PAGE)BUSINESS (RIGHT PAGE)
3. Extend the balances in the Trial Balance columns to the Adjusted Trial Balance columns.
4. Total, prove, and rule the Adjusted Trial Balance columns.
3
4
5
6
5. Extend the amounts in the Adjusted Trial Balance columns to the appropriate Income Statement and Balance Sheet columns.
6. Total, prove, and rule the appropriate Income Statement and Balance Sheet columns.
Lesson 15-3, page 383Lesson 15-3, page 383