The document discusses how to prepare adjusting entries and a work sheet. It provides instructions on how to record supplies and prepaid insurance adjustments on a work sheet, including debiting and crediting the appropriate accounts and amounts. It also describes how to prove the adjustments columns by adding the debit and credit totals, extend account balances to the appropriate columns, and calculate net income or loss on the work sheet. The overall purpose is to demonstrate the process of planning and recording adjusting entries on a work sheet.

1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 6-2LESSON 6-2
Planning Adjusting Entries
on a Work Sheet

2. 2
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
SUPPLIES ADJUSTMENT ON ASUPPLIES ADJUSTMENT ON A
WORK SHEETWORK SHEET
11
22
page 158
33
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.

3. 3
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
PREPAID INSURANCE ADJUSTMENTPREPAID INSURANCE ADJUSTMENT
ON A WORK SHEETON A WORK SHEET page 159
11
22
33
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.

4. 4
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
PROVING THE ADJUSTMENTSPROVING THE ADJUSTMENTS
COLUMNS OF A WORK SHEETCOLUMNS OF A WORK SHEET page 160
3. Rule double lines.
2. Add both the Adjustments Debit and Credit columns.
Write each column’s total.
1. Rule a single line.
11
33
22

5. 5
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
PREPARING A WORK SHEETPREPARING A WORK SHEET page 160 C
1. Write the heading.
2. Record the trial balance.
3. Record the supplies adjustment.
4. Record the prepaid insurance adjustment.
5. Prove the Adjustments columns.
6. Extend all balance sheet account balances.
7. Extend all income statement account balances.
8. Calculate and record the net income (or net loss).
9. Total and rule the Income Statement and Balance Sheet
columns.

6. 6
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

7. 7
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
11

8. 8
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
(b)
10000
44
(b)
10000
(a)
71500
(a)
71500
33
496400
10000
15000
11000
10000
102500
120000
20000
5000
500000
62500
356500
21300
2800
30000
881500 881500 81500 81500 146600 356500 734900 525000
356500 734900
496400
10000
15000
10000
31000
110000
20000
5000
500000
62500
66
11000
21300
2800
30000
356500
10000
71500
77
209900 209900Net Income 88
99
11
22
55
356500 734900

9. 9
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERM REVIEWTERM REVIEW
 adjustments
page 161

10. 9
LESSON 6-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERM REVIEWTERM REVIEW
 adjustments
page 161