CENTURY 21 ACCOUNTING © Thomson/South-Western 1 LESSON 15 TERM REVIEW merchandise inventory page 418

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 15-2 Beginning an 8-Column Work Sheet for a Merchandising Business

CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 15 RECORDING A TRIAL BALANCE ON A WORK SHEET Page Account title 2.Account balance 3.Total, prove, and rule the debit and credit columns

CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 15 ANALYZING AND RECORDING SUPPLIES ADJUSTMENTS page 376 Adj. (a)2, Supplies Expense—Office Dec. 31 Bal.3,480.00Adj. (a)2, (Adj Bal ) Supplies — Office Adj. (b)2, Supplies Expense — Store Dec. 31 Bal.3,944.00Adj. (b) 2, (Adj Bal.1,034.00) Supplies — Store

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 15-1 Planning and Recording a Merchandise Inventory Adjustment

CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 15 MERCHANDISE INVENTORY page 376

CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 15 ANALYZING AND RECORDING A MERCHANDISE INVENTORY ADJUSTMENT page Write the debit amount. 3.Label the two parts of this adjustment with a small letter d in parentheses. 2.Write the credit amount.

CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON 15 ANALYZING AN ADJUSTMENT WHEN ENDING MERCHANDISE INVENTORY IS GREATER THAN BEGINNING MERCHANDISE INVENTORY page 378 Jan. 1 Bal.294, Adj. (d)4, (New Bal.298,900.00) Merchandise Inventory Adj. (d)4, Income Summary

CENTURY 21 ACCOUNTING © Thomson/South-Western 9 LESSON 15 RECORDING SUPPLIES ADJUSTMENTS ON A WORK SHEET 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. 3 3

CENTURY 21 ACCOUNTING © Thomson/South-Western 10 LESSON 15 ANALYZING AND RECORDING A PREPAID INSURANCE ADJUSTMENT 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.

CENTURY 21 ACCOUNTING © Thomson/South-Western 11 LESSON 15 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.

CENTURY 21 ACCOUNTING © Thomson/South-Western 12 LESSON 15 COMPLETING A WORK SHEET 11 page Total the Income Statement and Balance Sheet columns. 5.Rule double lines. 4.Calculate the column totals. 3.Extend the net income amount. 2.Calculate and enter the net income after federal income tax.

CENTURY 21 ACCOUNTING © Thomson/South-Western 13 LESSON 15 A COMPLETED 8-COLUMN WORK SHEET

CENTURY 21 ACCOUNTING © Thomson/South-Western 14 LESSON 15 A 10-COLUMN WORK SHEET 1.Trial balance Extend balances 2.Adjustments 3.Extend adjusted balances 4.Total, prove, and rule 6.Calculate net income; total, prove and rule 1