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05 ohp slides 1
- 1. Worksheet Preparation H0032 * Property of STI Page 1 of 8 WORKSHEET PREPARATION Types of Adjusting Entries: Adjusting Entries 1. Entries to apportion recorded costs 2. Entries to apportion unearned revenue 3. Entries to record unrecorded expenses 4. Entries to record unrecorded revenue
- 2. Worksheet Preparation H0032 * Property of STI Page 2 of 8 Apportioning Recorded Costs o Insurance Prepaid Expenses o Office Supplies Unexpired Insurance xxx Cash xxx Insurance Expense xxx Unexpired Insurance xxx Office Supplies xxx Cash xxx Office Supplies Expense xxx Office Supplies xxx o Depreciation of Building/Office Equipment Depreciation Expense xxx Accumulated Depreciation xxx
- 3. Worksheet Preparation H0032 * Property of STI Page 3 of 8 Apportioning Unearned Revenue Cash xxx Unearned Management Fees xxx Unearned Management Fees xxx Management Fees Earned xxx
- 4. Worksheet Preparation H0032 * Property of STI Page 4 of 8 Recording Unrecorded Expenses Accrual of Interest Cash xxx Notes Payable xxx Interest Expense xxx Interest Payable xxx Salaries Expense xxx Salaries Payable xxx Salaries Payable xxx Salaries Expense xxx Cash xxx Accrual of Salary
- 5. Worksheet Preparation H0032 * Property of STI Page 5 of 8 Recording Unrecorded Revenue Management Fees Receivable xxx Management Fees Earned xxx Cash xxx Management Fees Receivable xxx Management Fees Earned xxx
- 6. Worksheet Preparation H0032 * Property of STI Page 6 of 8 The Worksheet Parts of the Worksheet o Heading o Body of the worksheet 1. The name of the business 2. The title “Worksheet” 3. Period of time covered Procedures in Preparing a Worksheet 1. Enter the ledger account balances in the trial balance column. 2. Enter the adjustments in the Adjustment column. 3. Enter the account balances as adjusted in the Adjusted Trial Balance columns. 4. Extend each amount in the Adjusted Trial Balance columns into the Income Statement or Balance Sheet columns. 5. Total the Income Statement and Balance Sheet columns.
- 7. Worksheet Preparation H0032 * Property of STI Page 7 of 8 Use of Worksheet 1. Preparing financial statements 2. Recording adjusting entries in the Accounting Records 3. Recording closing entries a. Debit the Revenue accounts and credit Income Summary. b. Debit Income Summary and credit Expense accounts. c. Transfer the balancing figure in the Income Statement columns. d. Debit the Capital account and credit the Drawing account.
- 8. Worksheet Preparation H0032 * Property of STI Page 8 of 8 The Accounting Cycle Transactions are analyzed & recorded in the journal Adjusting entries are journalized & posted to the ledger A post-closing trial balance is prepared Transactions are posted to the ledger A trial balance is prepared, adjustment data are Assembled & an optional worksheet is completed. Financial statements are prepared Closing entries are journalized & posted to the ledger