LESSON 8-1 Recording Adjusting Entries 5/22/2019 LESSON 8-1 Recording Adjusting Entries GREEN

ADJUSTING ENTRY FOR SUPPLIES page 202 1. Write the heading. 2. Write the date. 3. Write the title of the account debited. Record the debit amount. 1 4. Write the title of the account credited. Record the credit amount. 3 2 4 LESSON 8-1

ADJUSTING ENTRY FOR PREPAID INSURANCE page 204 1. Write the date. 2. Write the title of the account debited. Record the debit amount. 3. Write the title of the account credited. Record the credit amount. 1 2 3 LESSON 8-1

TERM REVIEW page 205 adjusting entries – journal entries recorded to update general ledger accounts at the end of a fiscal period LESSON 8-1

LESSON 8-2 Recording Closing Entries 5/22/2019 LESSON 8-2 Recording Closing Entries GREEN

NEED FOR THE INCOME SUMMARY ACCOUNT page 207 LESSON 8-2

CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE page 208 (Debit to close) 1 2 3 4 1. Write the heading. 2. Write the date. 3. Write the title of the account debited. Record the debit amount. 4. Write the title of the account credited. Record the credit amount. LESSON 8-2

CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 209 (Credit to close) 1. Date 2. Income Summary 3. Credit 4. Debit amount 2 4 1 3 LESSON 8-2

CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT page 210 1. Date 2. Debit (Income Summary: debit to close) (Capital: credit to record net income) 3. Credit 1 2 3 LESSON 8-2

CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT LESSON 8-2 5/22/2019 CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT page 211 1. Date (Credit to close) 2. Debit 3. Credit 1 2 3 LESSON 8-2 GREEN

TERMS REVIEW page 212 permanent accounts – accounts that accumulate information from one fiscal period to the next temporary accounts – accounts used to accumulate information until it is transferred to the owner’s capital account closing entries – journal entries used to prepare temporary accounts for a new fiscal period LESSON 8-2

LESSON 8-3 Preparing a Post-Closing Trial Balance 5/22/2019 LESSON 8-3 Preparing a Post-Closing Trial Balance GREEN

GENERAL LEDGER ACCOUNTS AFTER ADJUSTING AND CLOSING ENTRIES ARE POSTED LESSON 8-3 5/22/2019 GENERAL LEDGER ACCOUNTS AFTER ADJUSTING AND CLOSING ENTRIES ARE POSTED page 213 LESSON 8-3 GREEN

POST-CLOSING TRIAL BALANCE page 216 1. Heading 4 1 2. Account titles 3. Account balances 2 3 4. Single rule 5. Compare totals 6. Totals 7. Record totals 6 7 8. Double rule 8 5 LESSON 8-3

ACCOUNTING CYCLE FOR A SERVICE BUSINESS page 217 1. Analyzes transactions 1 2. Journalize 2 3. Post 8 4. Prepare work sheet 5. Prepare financial statements 3 6. Journalize adjusting and closing entries 7 4 7. Post adjusting and closing entries 8. Prepare post-closing trial balance 6 5 LESSON 8-3

TERMS REVIEW page 219 post-closing trial balance – a trial balance prepared after the closing entries are posted accounting cycle – the series of accounting activities included in recording financial information for a fiscal period LESSON 8-3