CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 14-2 Beginning an 8-Column Work Sheet for a Merchandising Business  Entering and recording a trial balance on a work sheet  Planning adjustments on a work sheet  Analyzing and recording supplies adjustments  Analyzing and recording a prepaid insurance adjustment

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Merchandising Business 2 LESSON 14-2 Objectives: 65 Generate trial balance and end of period adjustments for a merchandising business 71 Summarize the progression from source documents to journals to ledgers to financial reports for a merchandising business

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 14-2 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 © 2009 South-Western, Cengage Learning 4 LESSON 14-2 ANALYZING AND RECORDING SUPPLIES ADJUSTMENTS page 411 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 © 2009 South-Western, Cengage Learning 5 LESSON 14-2 RECORDING SUPPLIES ADJUSTMENTS ON A WORK SHEET page 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 © 2009 South-Western, Cengage Learning 6 LESSON 14-2 ANALYZING AND RECORDING A PREPAID INSURANCE ADJUSTMENT page 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.