Chapter 9.1 Adjusting Entries Trial Balance Some amounts on the trial balance are out of date

Chapter 9.1 Adjusting Entries Supplies The Supplies balance shows the total supplies purchased in the year

Chapter 9.1 Adjusting Entries What is What the balance is

Chapter 9.1 Adjusting Entries What Should be What the balance should be What the balance “should be” is determined from someone counting the supplies that remain in the business at the end of the year

Chapter 9.1 Adjusting Entries The Adjustment The required adjustment

Chapter 9.1 Adjusting Entries Expense What is What the balance is The income statement account related to Supplies is shown above The accounting clerk has not used this account during the year

Chapter 9.1 Adjusting Entries Expense What Shoud be What the balance should be What the balance “should be” is the amount of supplies “used up” during the year

Chapter 9.1 Adjusting Entries Expense Adjustment The required adjustment

Chapter 9.1 Adjusting Entries The adjusting entry as it would appear in the general journal Adjusting Entry

Chapter 9.1 Adjusting Entries Prepaid Insurance The Prepaid Insurance balance shows the total cost of insurance bought in the year

Chapter 9.1 Adjusting Entries What is What the balance is

Chapter 9.1 Adjusting Entries What Should be What the balance should be What the balance “should be” is determined from someone calculating the portion of the insurance policy that is “unexpired”

Chapter 9.1 Adjusting Entries The Adjustment The required adjustment

Chapter 9.1 Adjusting Entries Expense What is What the balance is The income statement account related to Prepaid Insurance is shown above The accounting clerk has not used this account during the year

Chapter 9.1 Adjusting Entries Expense What Should be What the balance should be What the balance “should be” is the amount of the insurance policy that has expired at year’s end

Chapter 9.1 Adjusting Entries Expense Adjustment The required adjustment

Chapter 9.1 Adjusting Entries Adjusting Journal Entry The adjusting entry for insurance as it would appear in the general journal

Chapter 9.1 Adjusting Entries Accounts Payable The Accounts Payable balance does not include two invoices that arrived late

Chapter 9.1 Adjusting Entries What is Little analysis is needed for this adjustment

Chapter 9.1 Adjusting Entries The adjustment Simply enter the late invoices

Chapter 9.1 Adjusting Entries The second adjustment Simply enter the late invoices

Chapter 9.1 Adjusting Entries What Should be And calculate the adjusted balance

Chapter 9.1 Adjusting Entries Expense What is

Chapter 9.1 Adjusting Entries The Adjustments

Chapter 9.1 Adjusting Entries The What Should bes

Chapter 9.1 Adjusting Entries The General journal The adjusting entry for late invoices as it would appear in the general journal

Chapter 9.1 Adjusting Entries The adjusting entries have brought balance sheet accounts up to date Summary 1 Adjusting Entries—Summary Balance Sheet

Chapter 9.1 Adjusting Entries And have recorded expenses in related accounts on the income statement Summary 2 Adjusting Entries—Summary Balance Sheet Income Statement