1. Accounting I
Chapter 9 – Recording Adjusting & Closing Entries for a Service Business

2. TERMS REVIEW adjusting entries permanent accounts temporary accounts
closing entries
Lesson 9-2, page 209

3. TERMS REVIEW Adjusting Entries
Journal entries recorded to update general ledger accounts at the end of a fiscal period.
Lesson 9-1, page 198

4. TERMS REVIEW Permanent Accounts
Accounts used to accumulate information from one fiscal period to the next.
Lesson 9-2, page 203

5. TERMS REVIEW Temporary Accounts
Accounts used to accumulate information until it is transferred to the owner’s capital account.
Lesson 9-2, page 203

6. TERMS REVIEW Closing Entries
Journal entries used to prepare temporary accounts for a new fiscal period.
Lesson 9-2, page 203

7. ADJUSTING ENTRY FOR SUPPLIES
Lesson 9-1
ADJUSTING ENTRY FOR SUPPLIES 3 1 2 4
1. Write the heading.
2. Write the date.
3. Record the debit.
4. Record the credit.
Lesson 9-1, page 200

8. ADJUSTING ENTRY FOR PREPAID INSURANCE2 1 3
1. Write the date.
2. Record the debit.
3. Record the credit.
Lesson 9-1, page 201

9. Work Together &
On Your Own –
Page 202

10. CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE
Lesson 9-1
CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE 3
(Debit to close) 1 2 4
1. Write the heading.
2. Write the date.
3. Record the debit.
4. Record the credit.
Lesson 9-2, page 205

11. CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES
1. Write the date.
2. Income Summary.
(Credit to close) 3
3. Record the credit.
4. Record the debit. 2 4 1
Lesson 9-2, page 206

12. CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT
(Capital: credit to record net income)
(Income Summary: debit to close) 2 1 3
1. Write the date.
2. Record the debit.
3. Record the credit.
Lesson 9-2, page 207

13. CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT2
(Capital: credit to close) 1 3
1. Write the date.
2. Record the debit.
3. Record the credit.
Lesson 9-2, page 208

14. Work Together &
On Your Own –
Page 209

15. TERMS REVIEW post-closing trial balance accounting cycle
Lesson9-3, page 215

16. TERMS REVIEW Post-Closing Trial Balance
A trial balance prepared after the closing entries are posted.
Lesson 9-3, page 213

17. TERMS REVIEW Accounting Cycle
The series of accounting activities included in recording financial information for a fiscal period.
Lesson 9-3, page 214

18. POST-CLOSING TRIAL BALANCE
1. Write the heading. 1
2. Write titles of all general ledger accounts with balances in the Account Title column. 2 3
3. Write each account’s balance. 4 6
4. Rule a single line. 8 7 5
5. Compare the two column totals.
6. Write Totals.
7. Write the column totals.
8. Rule double lines.
Lesson 9-3, page 213

19. ACCOUNTING CYCLE FOR A SERVICE BUSINESS
1. Source documents checked for accuracy, and transactions are analyzed. 1 2
2. Transactions are recorded in a journal. 8
3. Journal entries are posted to the general ledger. 3
4. Work sheet is prepared.
5. Financial statements are prepared. 7 4
6. Adjusting and closing entries are journalized. 6
7. Adjusting and closing entries are posted. 5
8. A post-closing trial balance is prepared.
Lesson 9-3, page 214

20. Work Together &
On Your Own –
Page 215