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TERM REVIEW

TERM REVIEW. page 418. merchandise inventory. LESSON 15-2. Beginning an 8-Column Work Sheet for a Merchandising Business. 1. 2. RECORDING A TRIAL BALANCE ON A WORK SHEET. Page 374. 1. Account title. 2. Account balance. 3. Total, prove, and rule the debit and credit columns. 3.

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TERM REVIEW

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  1. TERM REVIEW page 418 • merchandise inventory LESSON 15

  2. LESSON 15-2 Beginning an 8-Column Work Sheet for a Merchandising Business

  3. 1 2 RECORDING A TRIAL BALANCE ON A WORK SHEET Page 374 1. Account title 2. Account balance 3. Total, prove, and rule the debit and credit columns 3 LESSON 15

  4. Supplies Expense—Office Adj. (a) 2,730.00 Supplies—Office Dec. 31 Bal. 3,480.00 Adj. (a) 2,730.00 (Adj Bal. 750.00) Supplies Expense—Store Adj. (b) 2,910.00 Supplies—Store Dec. 31 Bal. 3,944.00 Adj. (b) 2,910.00 (Adj Bal. 1,034.00) ANALYZING AND RECORDING SUPPLIES ADJUSTMENTS page 376 LESSON 15

  5. LESSON 15-1 Planning and Recording a Merchandise Inventory Adjustment

  6. MERCHANDISE INVENTORY page 376 LESSON 15

  7. 3 3 ANALYZING AND RECORDING A MERCHANDISE INVENTORY ADJUSTMENT page 378 2 1 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment with a small letter d in parentheses. LESSON 15

  8. Merchandise Inventory Jan. 1 Bal. 294,700.00 Adj. (d) 4,200.00 (New Bal. 298,900.00) Income Summary Adj. (d) 4,200.00 ANALYZING AN ADJUSTMENT WHEN ENDING MERCHANDISE INVENTORY IS GREATER THAN BEGINNING MERCHANDISE INVENTORY page 378 LESSON 15

  9. 3 3 RECORDING SUPPLIES ADJUSTMENTS ON A WORK SHEET 2 1 1. Write the debit amounts in the Adjustments Debit column. 2. Write the credit amounts in the Adjustments Credit column. 3. Label the two parts of the Supplies—Office adjustment with small letter a and small letter b in parentheses. LESSON 15

  10. 3 3 ANALYZING AND RECORDING A PREPAID INSURANCE ADJUSTMENT 1 2 1. Enter the amount of insurance used in the Adjustments Credit column. 2. Enter the same amount in the Adjustments Debit column. 3. Label the two parts of the adjustment with a small letter c in parentheses. LESSON 15

  11. Extending Numbers • Assets, Liabilities, and Owner’s Equity Accounts are extended to the Balance Sheet Section • Make sure to calculate adjusted accounts • Cash to Dividends • Revenue and Expenses are extended to the Income Statement section • Income Summary to Federal Income Tax Expense. LESSON 15

  12. 1 1 2 4 5 3 COMPLETING A WORK SHEET page 430 1. Total the Income Statement and Balance Sheet columns. 2. Calculate and enter the net income after federal income tax. 3. Extend the net income amount. 4. Calculate the column totals. 5. Rule double lines. LESSON 15

  13. A COMPLETED 8-COLUMN WORK SHEET LESSON 15

  14. 2 3 1 5 A 10-COLUMN WORK SHEET 4 6 1. Trial balance 5. Extend balances 6. Calculate net income; total, prove and rule 2. Adjustments 3. Extend adjusted balances 4. Total, prove, and rule LESSON 15

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