LESSON 4-5 End-of-Period Work for a Departmentalized Business 5/30/2019 LESSON 4-5 End-of-Period Work for a Departmentalized Business RED

JOURNALIZING ADJUSTING ENTRIES FOR A DEPARTMENTALIZED BUSINESS page 118 1. Write Adjusting Entries in the Account Title column. 1 2 2. Enter the adjusting entries without additional explanation. LESSON 4-5

JOURNALIZING CLOSING ENTRIES FOR A DEPARTMENTALIZED BUSINESS page 119 1 2 3 1. Write Closing Entries in Account Title column. 2. Record entry to close income statement accounts with credit balances. 3. Write (continued on general journal page 15) to show that the closing entries are continued. LESSON 4-5

JOURNALIZING CLOSING ENTRIES FOR A DEPARTMENTALIZED BUSINESS page 120 4. Write Closing Entries (continued) in the Account Title column. 4 5 5. Record entry to close income statement accounts with debit balances. 6. Record entry to close Income Summary to Retained Earnings. 6 7. Record entry for Dividends. 7 LESSON 4-5

POST-CLOSING TRIAL BALANCE FOR A DEPARTMENTALIZED BUSINESS page 122 LESSON 4-5

SUMMARY OF ACCOUNTING CYCLE page 123 1. Verify source documents for accuracy. 2. Record entries in journals. 1 3. Post journal entries to the ledgers. 2 9 4. Prepare interim departmental statement of gross profit. 5. Prepare schedules of accounts receivable and accounts payable from the subsidiary ledgers. 3 5 8 6. Prepare a trial balance on the work sheet. 4 6 7. Prepare financial statements. 7 8. Journalize and post adjusting and closing entries. 9. Prepare a post-closing trial balance. LESSON 4-5

TERMS REVIEW adjusting entries closing entries page 117 adjusting entries closing entries post-closing trial balance accounting cycle LESSON 4-5