CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Recording Adjusting Entries

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning TechKnow Consulting TechKnow Consulting prepares a Worksheet at the end of every fiscal period to summarize General Ledger Information and to use to create financial documents, such as Income Statements and Balance Sheets. TeckKNow Consulting’s adjustments are analyzed and planned on a work sheet. However these adjustments must be journalized to they can be posted to the general ledger accounts. Journal entries recorded to update general ledger accounts at the end of the fiscal period are called adjusting entries.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 8-1 ADJUSTING ENTRY FOR SUPPLIES 1 2 page Write the title of the account credited. Record the credit amount. 3.Write the title of the account debited. Record the debit amount. 2.Write the date. 1.Write the heading.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 8-1 ADJUSTING ENTRY FOR PREPAID INSURANCE page Write the title of the account credited. Record the credit amount. 2.Write the title of the account debited. Record the debit amount. 1.Write the date.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 8-1 TERM REVIEW adjusting entries page 205

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Ticket out the door Why do we make adjustments on the worksheet? Why do we make adjusting journal entries and post them to the general ledger? What would happen if we didn’t make adjusting entries? 6 LESSON 8-1