1. NETA POWERPOINT PRESENTATIONS TO ACCOMPANY VOLUME 1 Accounting Second Canadian Edition BY WARREN/REEVE/DUCHAC/ELWORTHY/KRISTJANSON/TOBER Adapted by Sheila Elworthy and Tana Kristjanson Copyright © 2014 by Nelson Education Ltd.1

2. CHAPTER 4 APPENDIX 2 End-of-Period Spreadsheet (Work Sheet) Copyright © 2014 by Nelson Education Ltd.2

3. 3 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 The unadjusted trial balance is checked for equality. Copyright © 2014 by Nelson Education Ltd.

4. 4 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 Supplies needs adjusting Copyright © 2014 by Nelson Education Ltd.

5. 5 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (a) Cost of supplies on hand at December 31 is $1,560. Copyright © 2014 by Nelson Education Ltd.

6. 6 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (b) 500 (a) 1,240 (b) Fees accrued at the end of December, but not recorded, totaled $500. Copyright © 2014 by Nelson Education Ltd.

7. 7 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (b) 500 (a) 1,240 (c) Wages accrued but not paid at the end of December totaled $250. Copyright © 2014 by Nelson Education Ltd. (c) 250

8. 8 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (b) 500 (a) 1,240 (d) Depreciation of office equipment is $50 for December. Copyright © 2014 by Nelson Education Ltd. (c) 250 (d) 50

9. 9 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (b) 500 (a) 1,240 (e) Prepaid Insurance of $200 expired in December. Copyright © 2014 by Nelson Education Ltd. (c) 250 (d) 50 (e) 200

10. 10 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (b) 500 (a) 1,240 (f) Unearned Rent of $120 was earned in December. Copyright © 2014 by Nelson Education Ltd. (c) 250 (d) 50 (e) 200 (f) 120

11. 11 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (b) 500 (a) 1,240 Copyright © 2014 by Nelson Education Ltd. (c) 250 (d) 50 (e) 200 (f) 120 2,360 Summed and ruled

12. The next step is to add or subtract the adjustments from (to) the amounts found in the Unadjusted Trial Balance columns and enter the results in the Adjusted Trial Balance columns. Copyright © 2014 by Nelson Education Ltd.12

13. 13 Account TitleDebitCreditDebitCreditDebitCredit Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Adjusted Cash2,065 Accounts Receivable2,220 Supplies2,800 Prepaid Insurance2,400 Office Equipment1,800 Acc. Depr.—Office. Equip. Land20,000 Accounts Payable900 Unearned Rent360 Wages Payable Chris Clark, Capital25,000 Chris Clark, Withdrawals4,000 Fees Earned16,340 Rent Revenue Wages Expense4,275 Rent Expense1,600 Depreciation Expense Utilities Expense985 Supplies Expense Insurance Expense Miscellaneous Exp.45542,600 (a) 1,240 (b) 500 (a) 1,240 Copyright © 2014 by Nelson Education Ltd. (c) 250 (d) 50 (e) 200 (f) 120 2,360 2,065 250 240 20,000 2,200 120 2,720 1,560 1,800 50 900 25,000 4,000 16,840 4,525 985 1,600 50 1,240 200 455 43,400

14. Because of space constraints, the Unadjusted Trial Balance and the Adjustments columns will not be shown in the following slides. Copyright © 2014 by Nelson Education Ltd.14

15. The next step is to extend amounts in the Adjusted Trial Balance columns to the Income Statement and Balance Sheet columns. Copyright © 2014 by Nelson Education Ltd.15

16. 16 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Income Statement Balance Sheet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash2,0652,065 Accounts Receivable2,7202,720 Supplies1,5601,560 Prepaid Insurance2,2002,200 Office Equipment1,8001,800 Acc. Depr.—Office. Equip. 5050 Land20,00020,000 Accounts Payable900900 Unearned Rent240240 Wages Payable250250 Chris Clark, Capital25,00025,000 Chris Clark, Withdrawals4,0004,000 Fees Earned16,84016,840 Rent Revenue120120 Wages Expense4,5254,525 Rent Expense1,6001,600 Depreciation Expense5050 Utilities Expense985985 Supplies Expense1,2401,240 Insurance Expense200200 Miscellaneous Exp.45545543,400 Copyright © 2014 by Nelson Education Ltd.

17. 17 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Income Statement Balance Sheet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash2,0652,065 Accounts Receivable2,7202,720 Supplies1,5601,560 Prepaid Insurance2,2002,200 Office Equipment1,8001,800 Acc. Depr.—Office. Equip. 5050 Land20,00020,000 Accounts Payable900900 Unearned Rent240240 Wages Payable250250 Chris Clark, Capital25,00025,000 Chris Clark, Withdrawals4,0004,000 Fees Earned16,84016,840 Rent Revenue120120 Wages Expense4,5254,525 Rent Expense1,6001,600 Depreciation Expense5050 Utilities Expense985985 Supplies Expense1,2401,240 Insurance Expense200200 Miscellaneous Exp.455455 43,40043,4009,05516,96034,34526,440 7,9057,905 16,96034,345 Copyright © 2014 by Nelson Education Ltd. The four columns are summed.

18. 18 9,05516,96034,34526,4407,905 16,96016,96034,34534,345 Income Statement Balance Sheet The difference between the Income Statement column totals is the net income (or net loss) for the period. Copyright © 2014 by Nelson Education Ltd. Net Income

19. 19 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Income Statement Balance Sheet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash2,0652,065 Accounts Receivable2,7202,720 Supplies1,5601,560 Prepaid Insurance2,2002,200 Office Equipment1,8001,800 Acc. Depr.—Office. Equip. 5050 Land20,00020,000 Accounts Payable900900 Unearned Rent240240 Wages Payable250250 Chris Clark, Capital25,00025,000 Chris Clark, Withdrawals4,0004,000 Fees Earned16,84016,840 Rent Revenue120120 Wages Expense4,5254,525 Rent Expense1,6001,600 Depreciation Expense5050 Utilities Expense985985 Supplies Expense1,2401,240 Insurance Expense200200 Miscellaneous Exp.455455 43,40043,4009,05516,96034,34526,440 Net Income7,9057,905 16,96016,96034,34534,345 Copyright © 2014 by Nelson Education Ltd.

20. The End Copyright © 2014 by Nelson Education Ltd.20