© 2014 Cengage Learning. All Rights Reserved. Do Now: ●Considering the closing entries made last class, what do you think we have to do now? ●Think about.

Slides:



Advertisements
Similar presentations
Recording Adjusting and Closing Entries for a Service Business
Advertisements

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Recording Adjusting Entries Accounting Period Cycle: When a company prepares a.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 22-1 Preparing a Work Sheet for a Corporation.
Chapter 8 Adjusting and Closing Entries
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-1 Recording Adjusting Entries.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Recording Adjusting Entries.
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO1 Journalize and post closing entries.
ACCOUNTING CYCLE FOR A SERVICE BUSINESS
COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO6 Record closing entries for a merchandising.
© 2014 Cengage Learning. All Rights Reserved. Learning Objective © 2014 Cengage Learning. All Rights Reserved. LO5 Prepare a post-closing trial balance.
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO2 Prepare a post-closing trial balance.
Recording Adjusting and Closing Entries for a Service Business Chapter 8, Section 3.
Closing the Accounting Cycle
Week 6.  Need to update certain general ledger accounts at the end of the fiscal period.  Reflect “internal” transactions ◦ Supplies used ◦ Prepaid.
Recording Adjusting and Closing Entries for a service business
RECORDING ADJUSTING AND CLOSING ENTRIES FOR A SERVICE BUSINESS
CHAPTER TWENTY THREE ADJUSTING AND CLOSING THE GENERAL LEDGER.
Chapter 8 Creating Financial Statements using data from Work Sheet.
At the end of the accounting period, the company makes the accounts ready for the next period. Closing the Books SO 2 Explain the process of closing the.
Recording Adjusting and Closing Entries for a Service Business Chapter 10.
CHAPTER 8 Recording Adjusting Entries and Closing Entries for a Service Business.
LESSON 8-1 Recording Adjusting Entries
Recording and Adjusting Closing Entries. 2LESSON 8-1 ADJUSTING ENTRY FOR SUPPLIES 1 2 page Write the title of the account credited. Record the.
Accounting Theory.  Accounting Period Cycle ◦ Preparing financial statements at the end of each fiscal period  Adjusting Entries ◦ Journal entries recorded.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 Recording Adjusting and Closing Entries for a Service Business.
 All temporary accounts must be “closed” at the end of an accounting cycle ◦ This prepares them for the next fiscal period.  Closing a temporary account.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-3 Preparing a Post-Closing Trial Balance.
© 2014 Cengage Learning. All Rights Reserved. Learning Objective © 2014 Cengage Learning. All Rights Reserved. LO1 Journalize and post closing entries.
ADJUSTED TRIAL BALANCE
© 2014 Cengage Learning. All Rights Reserved. Vocabulary Test Review © 2014 Cengage Learning. All Rights Reserved.
Chapter 17 – Recording Adjusting and Closing Entries for a Partnership n Objectives –Identify accounting concepts and practices related to adjusting and.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-3 Preparing a Post-Closing Trial Balance.
ACCOUNTING CYCLE FOR A SERVICE BUSINESS 1 1.Source documents checked for accuracy, and transactions are analyzed. 8 8.A post-closing trial balance is prepared.
Chapter 8 Recording Adjusting and Closing Entries TEST = 150 Points.
Begin Chapter 8 notes. » Adjusting entries – journal entries recorded to update general ledger accounts at the end of a fiscal period.
Ch apter 9 Recording Adjusting and Closing Entries for a Service Business.
© 2014 Cengage Learning. All Rights Reserved. Learning Targets © 2014 Cengage Learning. All Rights Reserved. Lesson 8-1 Recording Closing Entries What:
© 2015 Cengage Learning. All Rights Reserved. Learning Objectives © 2015 Cengage Learning. All Rights Reserved. LO9Complete end-of-period work for a departmentalized.
Accounting December 2, 2014 Chapter 8-2 notes 8-2 WT & OYO Chapter 8-3 notes 8-3 WT & OYO.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-3 Preparing a Post-Closing Trial Balance Original created by M.C. McLaughlin, Thomson/South-Western.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-3 Preparing a Post-Closing Trial Balance.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 8: Recording Adjusting and Closing Entries for a Service Business Objectives: Define.
LESSON 8-1 Recording Adjusting Entries
LESSON 8-1 Recording Adjusting Entries
Accounting I Chapter 9 – Recording Adjusting & Closing Entries for a Service Business.
Recording Adjusting and Closing Entries for a Service Business
Recording Adjusting and Closing Entries
© 2014 Cengage Learning. All Rights Reserved.
COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -
© 2014 Cengage Learning. All Rights Reserved.
© 2014 Cengage Learning. All Rights Reserved.
© 2014 Cengage Learning. All Rights Reserved.
Financial Statements Review
LESSON 8-1 Recording Adjusting Entries
© 2014 Cengage Learning. All Rights Reserved.
LESSON 8-1 Recording Closing Entries
© 2014 Cengage Learning. All Rights Reserved.
© 2014 Cengage Learning. All Rights Reserved.
Recording Adjusting and Closing Entries
The Accounting Cycle The accounting cycle helps to keep accounting records in an orderly fashion. Collect and verify source documents Analyze each transaction.
LESSON 8-2 Preparing a Post-Closing Trial Balance
© 2014 Cengage Learning. All Rights Reserved.
© 2014 Cengage Learning. All Rights Reserved.
© 2014 Cengage Learning. All Rights Reserved.
LESSON 8-1 5/22/2019 CHAPTER 8 Recording Adjusting Entries and Closing Entries for a Service Business.
LESSON 8-1 Recording Adjusting Entries
© 2014 Cengage Learning. All Rights Reserved.
© 2014 Cengage Learning. All Rights Reserved.
Presentation transcript:

© 2014 Cengage Learning. All Rights Reserved. Do Now: ●Considering the closing entries made last class, what do you think we have to do now? ●Think about the cycle we have gone through when recording transactions thus far in this course ●Hint: What two components of any spreadsheet always need to balance and where have we done this before? SLIDE 1

© 2014 Cengage Learning. All Rights Reserved. Class Activity: ●Five cups labeled either Sales, Expenses, Income Summary, Drawing, and Capital ●Pieces of paper have titles and amounts of Sales, $12,000…Expenses, $9,800…Income Summary, blank…Drawing, $200…Capital, $2,390 ●Transfer strips of paper to appropriate cup to exemplify four types of closing entries ●Others evaluate/assess decision by classmate SLIDE 2

© 2014 Cengage Learning. All Rights Reserved. Lesson 8-1 Audit Your Understanding 1.What do the ending balances of permanent accounts for one fiscal period represent at the beginning of the next fiscal period? SLIDE 3 ANSWER Beginning balances Lesson 8-1

© 2014 Cengage Learning. All Rights Reserved. Lesson 8-1 Audit Your Understanding 2.What do the balances of temporary accounts show? SLIDE 4 ANSWER Changes in the owner’s capital account for a single fiscal period Lesson 8-1

© 2014 Cengage Learning. All Rights Reserved. Lesson 8-1 Audit Your Understanding 3.List the four closing entries. ●8-1 Work Together on Front Board SLIDE 5 ANSWER 1.An entry to close income statement accounts with credit balances. 2.An entry to close income statement accounts with debit balances. 3.An entry to record net income or net loss and close the Income Summary account. 4.An entry to close the owner’s drawing account. Lesson 8-1

© 2014 Cengage Learning. All Rights Reserved. General Ledger Accounts after Closing Entries Are Posted SLIDE 6 LO2 Lesson 8-2 When an account has a zero balance, lines are drawn in both the Balance Debit and Balance credit columns

© 2014 Cengage Learning. All Rights Reserved. General Ledger Accounts after Closing Entries Are Posted SLIDE 7 LO2 Lesson 8-2

© 2014 Cengage Learning. All Rights Reserved. Post-Closing Trial Balance ●A trial balance prepared after the closing entries are posted is called a post-closing trial balance. ●Only general ledger accounts with balances are included on a post-closing trial balance ●Permanent accounts (assets, liabilities, owner’s capital) ●Temporary accounts (INCOME SUMMARY, revenue, expenses, and drawing) are closed and have zero balances, so they don’t appear on a post-closing trial balance SLIDE 8 LO2 Lesson 8-2

© 2014 Cengage Learning. All Rights Reserved. Post-Closing Trial Balance SLIDE 9 LO2 Lesson 8-2 Single Rule Record Totals Heading Totals 8 8 Double Rule Account Titles Compare Totals Account Balances 3 3

© 2014 Cengage Learning. All Rights Reserved. Accounting Cycle for a Service Business ●The series of accounting activities included in recording financial information for a fiscal period is called an accounting cycle. ●Concept “Accounting Period Cycle” ●Class Activity: 8-2 WT ●Complete as class by explaining answers to different parts of problem (answer and where you found it specifically) SLIDE 10 LO2 Lesson 8-2

© 2014 Cengage Learning. All Rights Reserved. Group Activity: ●In groups of 2, create a poem/song about the process we have undergone in this class from the time a transaction was identified to the point at which we reached today. ●**Hint: remember to include ALL types of journal entries** ●**Hint: you have used five different spreadsheets to do all of the accounting work thus far, with the exception of the checking account chapter work…one spreadsheet is used twice** ●You will also create an illustration to accompany your poem/song while you present so that we can visualize the process you are explaining ●Presentations to follow ●Once each presentation ends, we will have a class evaluation of groups’ accuracy using a scale of 1-5 on white boards ●Class Discussion about which items were correct/incorrect in each cycle SLIDE 11

© 2014 Cengage Learning. All Rights Reserved. Accounting Cycle for a Service Business SLIDE 12 LO2 Lesson Prepare post-closing trial balance 7. 7.Journalize and post closing entries 6. 6.Prepare financial statements 5. 5.Journalize and post adjusting entries 4. 4.Prepare work sheet 3. 3.Post 2. 2.Journalize 1. 1.Analyze transactions

© 2014 Cengage Learning. All Rights Reserved. Lesson 8-2 Audit Your Understanding 1.Why are lines drawn in both the Balance Debit and Balance Credit columns when an account has a zero balance? SLIDE 13 ANSWER To assure a reader that a balance has not been omitted Lesson 8-2

© 2014 Cengage Learning. All Rights Reserved. Lesson 8-2 Audit Your Understanding 2.Which accounts go on the post-closing trial balance? SLIDE 14 ANSWER Only those with balances (permanent accounts) Lesson 8-2

© 2014 Cengage Learning. All Rights Reserved. Lesson 8-2 Audit Your Understanding 3.Why are temporary accounts omitted from a post-closing trial balance? SLIDE 15 ANSWER Because they are closed and have zero balances Lesson 8-2

© 2014 Cengage Learning. All Rights Reserved. Lesson 8-2 Audit Your Understanding 4. What are the steps in the accounting cycle? SLIDE 16 ANSWER 1.Analyze transactions. 2.Journalize. 3.Post. 4.Prepare work sheet. 5.Journalize and post adjusting entries. 6.Prepare financial statements. 7.Journalize and post closing entries. 8.Prepare post-closing trial balance. Lesson 8-2

© 2014 Cengage Learning. All Rights Reserved. Question then CLOSE ●Create questions regarding chapter 8 that you feel are essential to answer in order to be able to complete closing entries and the post-closing trial balance ●Others will ring bell if they know the answer ●Create an alternate method of the accounting cycle that you believe would be more efficient/effective when taking a transaction and working toward a post-closing trial balance – be innovative! SLIDE 17