for BAF3M-EL

1. BAF3M Accounting
U4A3 – The 8 Column Work Sheet

2. U4A3 Adjusting Entries and
the Work Sheet
• The work sheet is an informal accounting
form used to help organize all of the
financial data
• There are 8 columns
– Trial Balance DR/CR
– Adjustments DR/CR
– Income Statement DR/CR
– Balance Sheet DR/CR

3. ADJUSTING FOR SUPPLIES
• According to Global Logistics’ trial balance they have
$1480.90 worth of supplies
• However, once a physical inventory was completed on
December 31, 2008 they discovered that they only had
$526.00 worth of supplies on hand
U4A3 Adjusting Entries and
the Work Sheet

4. Global Logistics Work Sheet
Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
520.51
Accounts Receivable 18475.00
1480.90
6564.00
4196.00
54600.00
52510.00
1240.00
720.00
25000.00
28895.42
Drawings 42000.00
213821.00
3500.00
1951.65
24000.00
1800.00
41951.16
3750.00
65957.20
296466.42 296466.42
Account Payable
Account Titles
Year ended: Dec. 31, 20--
Capital
Bank Loan
GST Recoverable
GST Payable
Bank
Automotive Equipment
Furniture & Equipment
Prepaid Inusrance
Supplies
Wages Espense
Utitlies Expense
Truck Expense
Telephone Expense
Rent Expense
Miscellaneious Expense
Bank Charges Expense
Shipping Revenue
Income
Trial Balance Adjustments Statement

5. ADJUSTING FOR SUPPLIES
20--
Dec. 31 Supplies Expense 964.90
Supplies 964.90
U4A3 Adjusting Entries and
the Work Sheet

6. Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
520.51
Account Receivable 18475.00
1480.90 954.90
6564.00
4196.00
54600.00
2510.00
1240.00
720.00
25000.00
28895.42
Drawings 42000.00
213821.00
3500.00
1951.65
24000.00
1800.00
41951.16
3750.00
65957.20
271466.42 271466.42
Supplies Expense 954.90
Trial Balance Adjustments Statement
Prepaid Insurance
Supplies
Wages Expense
Utitlies Expense
Truck Expense
Telephone Expense
Rent Expense
Miscellaneous Expense
Bank Charges Expense
Shipping Revenue
Account Payable
Account Titles
Capital
Bank Loan
GST Recoverable
GST Payable
Bank
Automotive Equipment
Furniture & Equipment

7. ADJUSTING FOR INSURANCE USED
• According to Global Logistics’ trial balance they have
$6564 in prepaid insurance
• They have$4070 remaining in unused insurance
U4A3 Adjusting Entries and
the Work Sheet

8. ADJUSTING FOR INSURANCE USED
20--
Dec. 31 Insurance Expense 2494
Prepaid Insurance 2494
U4A3 Adjusting Entries and
the Work Sheet

9. Global Logistics Work Sheet
Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
520.51
Account Receivable 18475.00
1480.90 954.90
6564.00 2494.00
4196.00
54600.00
2510.00
1240.00
720.00
25000.00
28895.42
Drawings 42000.00
213821.00
3500.00
1951.65
24000.00
1800.00
41951.16
3750.00
65957.20
271466.42 271466.42
Supplies Expense 954.90
Insurance Expense 2494
Account Payable
Account Titles
Year ended: Dec. 31, 2008
Capital
Bank Loan
GST Recoverable
GST Payable
Bank
Automotive Equipment
Furniture & Equipment
Prepaid Insurance
Supplies
Wages Expense
Utitlies Expense
Truck Expense
Telephone Expense
Rent Expense
Miscellaneous Expense
Bank Charges Expense
Shipping Revenue
Income
Trial Balance Adjustments Statement

10. U4A3 Adjusting Entries and
the Work Sheet
ADJUSTING FOR LATE ARRIVING INVOICES
• Three late invoices in this example
Telephone $ 45
Truck Repair 496
Printer Repair 85
Total $626

11. U4A3 Adjusting Entries and
the Work Sheet
20--
Dec. 31 Telephone expense 45
Truck expense 496
Miscellaneous expense 85
Accounts Payable 626

12. Global Logistics Work Sheet
Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
520.51
Account Receivable 18475.00
1480.90 954.90
6564.00 2494.00
4196.00
54600.00
2510.00 626.00
1240.00
720.00
25000.00
28895.42
Drawings 42000.00
213821.00
3500.00
1951.65 85.00
24000.00
1800.00 45.00
41951.16 496.00
3750.00
65957.20
271466.42 271466.42
Supplies Expense 954.90
Insurance Expense 2494
Account Payable
Account Titles
Year ended: Dec. 31, 2008
Capital
Bank Loan
GST Recoverable
GST Payable
Bank
Automotive Equipment
Furniture & Equipment
Prepaid Insurance
Supplies
Wages Expense
Utitlies Expense
Truck Expense
Telephone Expense
Rent Expense
Miscellaneous Expense
Bank Charges Expense
Shipping Revenue
Income
Trial Balance Adjustments Statement

13. COMPLETING THE SHEET
• From this point you complete the 8-column worksheet just as you
completed the 6-column worksheet
– Except as you transfer numbers to the correct column you may need to
add or subtract the adjustments into the totals as necessary
• Balance the columns using the “magical” number
• Underline where necessary

14. Global Logistics Work Sheet
Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
520.51 520.51
Account Receivable 18475.00 18475.00
1480.90 954.90 526.00
6564.00 2494.00 4070.00
4196.00 4196.00
54600.00 54600.00
2510.00 626.00 3136.00
1240.00 1240.00
720.00 720.00
25000.00 25000.00
28895.42 28895.42
Drawings 42000.00 42000.00
213821.00 213821.00
3500.00 3500.00
1951.65 85.00 2036.65
24000.00 24000.00
1800.00 45.00 1845.00
41951.16 496.00 42447.16
3750.00 3750.00
65957.20 65957.20
271466.42 271466.42
Supplies Expense 954.90 954.90
Insurance Expense 2494 2494
4074.90 4074.90 146984.91 213821.00 125107.51 58271.42
66836.09 66836.09
213821.00 213821.00 125107.51 125107.51
Account Payable
Account Titles
Year ended: Dec. 31, 2008
Capital
Bank Loan
GST Recoverable
GST Payable
Bank
Automotive Equipment
Furniture & Equipment
Prepaid Insurance
Supplies
Wages Expense
Utitlies Expense
Truck Expense
Telephone Expense
Rent Expense
Miscellaneous Expense
Bank Charges Expense
Shipping Revenue
Income
Trial Balance Adjustments Statement
Add in your labels for net income(loss) and totals

15. U4A3 Adjusting Entries and
the Work Sheet
• Journalizing and Posting the Adjusting Entries
– All the adjusting entries need to be properly journalized and
posted to the ledger
– Reminder that the work sheet is an informal accounting
document, which means it is only used internally (inside the
company) – it is a tool used the by the accounting dept to
organize data before creating the formal financial
statements.
– Formal statements (I/S, B/S) are used externally (outside the
company)