LESSON 16-1 Recording Adjusting and Closing Entries for a Corporation CHAPTER 16 4/25/2017 Recording Adjusting and Closing Entries for a Corporation Blue

ADJUSTING ENTRIES RECORDED FROM A WORK SHEET page 480 1. Heading 2. Date 3 3. Identify the first adjustment 4. Account debited 5. Debit 6. Account credited 7. Credit 8. Continue down the Adjustments columns 2 1 4 6 5 7

ADJUSTING ENTRY FOR ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS page 482

ADJUSTING ENTRY FOR MERCHANDISE INVENTORY page 482

ADJUSTING ENTRY FOR SUPPLIES—OFFICE page 483

ADJUSTING ENTRY FOR SUPPLIES—STORE page 483

ADJUSTING ENTRY FOR PREPAID INSURANCE page 484

ADJUSTING ENTRY FOR DEPRECIATION—OFFICE EQUIPMENT page 484

ADJUSTING ENTRY FOR DEPRECIATION—STORE EQUIPMENT page 485

ADJUSTING ENTRY FOR FEDERAL INCOME TAXES page 485

LESSON 16-1 Recording Closing Entries for Income Statement Accounts 4/25/2017 Recording Closing Entries for Income Statement Accounts Blue

THE INCOME SUMMARY ACCOUNT page 487

CLOSING ENTRY FOR ACCOUNTS WITH CREDIT BALANCES page 488 3 1 2 4 1. Heading 3. Debits to close 2. Date 4. Credit to Income Summary

CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 489 1. Date 2. Account debited 3 3. Credits to close 4. Debit amount 1 2 4

SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 490 Bal. 209,960.00 Closing 209,960.00 (New Bal. zero) Purchases Adj. (mdse. inv.) 15,840.00 Closing (credit amounts) 500,253.10 Closing (debit accounts) 404,099.15 (New Bal. 80,313.95) Income Summary

CLOSING ENTRY TO RECORD NET INCOME page 491 1 2 3 1. Date 2. Debit Income Summary 3. Credit Retained Earnings

CLOSING ENTRY FOR DIVIDENDS page 491 1 2 3 1. Date 2. Debit Retained Earnings 3. Credit Dividends

COMPLETED CLOSING ENTRIES FOR A CORPORATION RECORDED IN A JOURNAL page 492