1. Learning Objectives Understand the Business – LO1 Explain why adjustments are needed. Study the accounting methods – LO2 Prepare adjustments needed at the end of the period. – LO3 Prepare an adjusted trial balance. – LO4 Prepare financial statements. – LO5 Explain the closing process. Evaluate the results – LO6 Explain how adjustments affect financial results. Review the chapter 1© McGraw-Hill Ryerson. All rights reserved.

2. 2 Use the Adjusted Trial Balance to prepare the Income Statement and Statement of Retained Earnings LO4 Prepare Financial Statements

3. © McGraw-Hill Ryerson. All rights reserved.3 LO4 Use the Adjusted Trial Balance to prepare the Balance Sheet