1. ADJUSTMENTS AND THE WORK SHEET FOR A MERCHANDISING BUSINESS
CHAPTER FIFTEEN
ADJUSTMENTS AND THE WORK SHEET FOR A MERCHANDISING BUSINESS

2. WORK SHEET OF A MERCHANDISING BUSINESS
Similar to service business worksheet
Used to record adjustments
Including adjustments for
Merchandise Inventory
Unearned Revenue
Used to prepare financial statements

3. ADJUSTMENT FOR MERCHANDISE INVENTORY
Example: Ponder’s Bike Parts had a beginning merchandise inventory of $25,000. At the end of the year, a physical inventory of merchandise determined that merchandise costing $30,000 was still on hand.

4. ADJUSTMENT FOR MERCHANDISE INVENTORY
More inventory at
the END then at
the BEGINNING
of the year?

5. ADJUSTMENT FOR MERCHANDISE INVENTORY
More inventory at
the END then at
the BEGINNING
of the year?
When PURCHASES EXCEED SALES,
the inventory balance is
HIGHER at the end of the year

6. ADJUSTMENT FOR MERCHANDISE INVENTORY
BEG. BALANCE
$25,000

7. ADJUSTMENT FOR MERCHANDISE INVENTORY
$25,000
This account is NOT
changed during the
accounting period

8. ADJUSTMENT FOR MERCHANDISE INVENTORY
PURCHASES
$25,000
XXX
Merchandise bought during
the year is debited to
Purchases instead of
Merchandise Inventory

9. ADJUSTMENT FOR MERCHANDISE INVENTORY
PURCHASES
$25,000
XXX
SALES
XXX
The COST of merchandise sold is NOT recorded.
The selling price is credited to the Sales account

10. ADJUSTMENT FOR MERCHANDISE INVENTORY
After a year of
purchasing and selling
merchandise, the balance
is no longer accurate
$25,000

11. ADJUSTMENT FOR MERCHANDISE INVENTORY
$25,000
An adjustment is needed to update the
balance of the Merchandise Inventory account

12. ADJUSTMENT FOR MERCHANDISE INVENTORY
$25,000
TWO-STEP
ADJUSTMENT!

13. Let’s look at the adjustment
Ponder’s Bike Parts Work Sheet (partial)
For Year Ended December 31, 20--
TRIAL BALANCE
ACCOUNT TITLE
DEBIT
CREDIT
Merchandise Inventory
25,000
Income Summary
Purchases
80,000
Purchases Returns and Allowances
1,000
Purchases Discounts
Let’s look at the adjustment
on a partial work sheet.
500
Freight-In
700

14. STEP #1 REMOVE THE BEGINNING BALANCE. TRIAL BALANCE ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Merchandise Inventory
25,000
Income Summary
Purchases
80,000
Purchases Ret. & Allow.
STEP #1
REMOVE THE
BEGINNING BALANCE.
1,000
Purchases Discounts
500
Freight-In
700

15. By crediting Merchandise Inventory, the balance is reduced to zero.
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Merchandise Inventory
25,000
25,000
(a)
Income Summary
Purchases
80,000
Purchases Ret. & Allow.
By crediting Merchandise Inventory,
the balance is reduced to zero.
1,000
Purchases Discounts
500
Freight-In
700

16. The corresponding debit is to Income Summary.
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Merchandise Inventory
25,000
25,000
(a)
Income Summary
(a)
25,000
Purchases
80,000
Purchases Ret. & Allow.
1,000
The corresponding debit is to Income Summary.
Purchases Discounts
500
Freight-In
700

17. The ending inventory is entered
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Merchandise Inventory
25,000
(b)
25,000
(a)
30,000
Income Summary
(a)
25,000
Purchases
80,000
Purchases Ret. & Allow.
1,000
Step #2
The ending inventory is entered
into the Merchandise Inventory account.
Purchases Discounts
500
Freight-In
700

18. The balance in the Merchandise Inventory
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Merchandise Inventory
25,000
(b)
25,000
(a)
30,000
Income Summary
(a)
25,000
Purchases
80,000
Purchases Ret. & Allow.
1,000
The balance in the Merchandise Inventory
account now reflects the actual amount
of inventory on hand at the end of the year.
Purchases Discounts
500
Freight-In
700

19. Income Summary is credited.
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Merchandise Inventory
25,000
(b)
25,000
(a)
30,000
Income Summary
(a)
25,000
(b)
30,000
Purchases
80,000
Purchases Ret. & Allow.
1,000
Income Summary is credited.
Purchases Discounts
500
Freight-In
700

20. “Adjusted Trial Balance”
ACCOUNT TITLE
TRIAL BAL.
ADJUSTMENTS
ADJ. TRIAL BAL.
DR.
CR.
DR.
CR.
DR.
CR.
(b)
(a)
Merch. Inv.
25,000
30,000
25,000
30,000
(a)
(b)
Income Sum.
25,000
30,000
Purchases
80,000
Purch. R &A
1,000
The new balance is
extended to the
“Adjusted Trial Balance”
columns.
Purch. Disc.
500
Freight-In
700

21. BOTH the beginning and ending inventory amounts are extended to the
ACCOUNT TITLE
TRIAL BAL.
ADJUSTMENTS
ADJ. TRIAL BAL.
DR.
CR.
DR.
CR.
DR.
CR.
(b)
(a)
Merch. Inv.
25,000
30,000
25,000
30,000
(a)
(b)
Income Sum.
25,000
30,000
25,000
30,000
Purchases
80,000
Purch. R &A
1,000
BE CAREFUL!!!
BOTH the beginning and ending inventory
amounts are extended to the
“Adjusted Trial Balance” columns.
Purch. Disc.
500
Freight-In
700

22. The other accounts are extended
ACCOUNT TITLE
TRIAL BAL.
ADJUSTMENTS
ADJ. TRIAL BAL.
DR.
CR.
DR.
CR.
DR.
CR.
(b)
(a)
Merch. Inv.
25,000
30,000
25,000
30,000
(a)
(b)
Income Sum.
25,000
30,000
25,000
30,000
Purchases
80,000
80,000
Purch. R &A
1,000
1,000
Purch. Disc.
500
500
Freight-In
700
700
The other accounts are extended
with no adjustments.

23. Merchandise Inventory is extended to the Balance Sheet columns.
ACCOUNT TITLE
ADJUST. T/B
INCOME STMT
BALANCE SHEET
DR.
CR.
DR.
CR.
DR.
CR.
Merch. Inv.
30,000
30,000
Income Sum.
25,000
30,000
Purchases
80,000
Purch. R &A
1,000
Purch. Disc.
500
Freight-In
700
Merchandise Inventory is extended
to the Balance Sheet columns.

24. BOTH the beginning and ending inventory
ACCOUNT TITLE
ADJUST. T/B
INCOME STMT
BALANCE SHEET
DR.
CR.
DR.
CR.
DR.
CR.
Merch. Inv.
30,000
30,000
Income Sum.
25,000
30,000
25,000
30,000
Purchases
80,000
Purch. R &A
1,000
Purch. Disc.
500
Freight-In
700
BOTH the beginning and ending inventory
are extended to the Income Statement columns.

25. Since the Purchases accounts and Freight-In
ACCOUNT TITLE
ADJUST. T/B
INCOME STMT
BALANCE SHEET
DR.
CR.
DR.
CR.
DR.
CR.
Merch. Inv.
30,000
30,000
Income Sum.
25,000
30,000
25,000
30,000
Purchases
80,000
80,000
Purch. R &A
1,000
1,000
Purch. Disc.
500
500
Freight-In
700
700
Since the Purchases accounts and Freight-In
are Income Statement accounts, they are
extended to the Income Statement columns.

26. The Cost of Goods Sold can be computed
ACCOUNT TITLE
ADJUST. T/B
INCOME STMT
BALANCE SHEET
DR.
CR.
DR.
CR.
DR.
CR.
Merch. Inv.
30,000
30,000
Income Sum.
25,000
30,000
25,000
30,000
Purchases
80,000
80,000
Purch. R &A
1,000
1,000
Purch. Disc.
500
500
Freight-In
700
700
The Cost of Goods Sold can be computed
from the Income Statement columns.

27. From Income Summary account on Work Sheet
Cost of Goods Sold:
Merch. Inv., January 1
$25,000
From Income Summary
account on Work Sheet

28. Before we can combine Purchases and
Cost of Goods Sold:
Merch. Inv., January 1
$25,000
Purchases
$80,000
Less: Purchases R&A
$1,000
Purchases Disc.
500
1,500
Before we can combine Purchases and
Beginning Inventory, we must subtract
the contra-purchases accounts.

29. Freight-In is added to Net Purchases
Cost of Goods Sold:
Merch. Inv., January 1
$25,000
Purchases
$80,000
Less: Purchases R&A
$1,000
Purchases Disc.
500
1,500
Net purchases
$78,500
Freight-In
700
Cost of Goods Purch.
79,200
Freight-In is added to Net Purchases
to determine the “Cost of Goods Purchased.”

30. Cost of Goods Purchased is added to the Beginning Inventory
Cost of Goods Sold:
Merch. Inv., January 1
$25,000
Purchases
$80,000
Less: Purchases R&A
$1,000
Purchases Disc.
500
1,500
Net purchases
$78,500
Freight-In
700
Cost of Goods Purch.
79,200
Goods available for sale
$104,200
Cost of Goods Purchased
is added to the Beginning Inventory
to determine Goods Available for Sale.

31. Merchandise still on hand at the end of the year
Cost of Goods Sold:
Merch. Inv., January 1
$25,000
Purchases
$80,000
Less: Purchases R&A
$1,000
Purchases Disc.
500
1,500
Net purchases
$78,500
Freight-In
700
Cost of Goods Purch.
79,200
Goods available for sale
$104,200
Less: Merch. Inv., Dec. 31
30,000
Cost of Goods Sold
$74,200
Merchandise still on hand at the end of the year
is subtracted from the amount available for sale
to determine the Cost of Goods Sold.

32. ADJUSTMENT FOR UNEARNED REVENUE
Example: Brown County Playhouse sells season tickets. Tickets sell for $10 for each play ($50 for a 5 play season ticket) and a maximum of 1,000 seats can be sold for each play. Let’s assume all shows sell out during the first week that season tickets are available.

33. ADJUSTMENT FOR UNEARNED REVENUE
UNEARNED TICKET REVENUE
$50,000
When season tickets are sold
Cash is debited and
Unearned Ticket Revenue is credited

34. ADJUSTMENT FOR UNEARNED REVENUE
UNEARNED TICKET REVENUE
$50,000
Following the production of the third show,
financial statements are to be prepared

35. ADJUSTMENT FOR UNEARNED REVENUE
UNEARNED TICKET REVENUE
$50,000
An adjusting entry is
needed to recognize the
ticket revenue earned
for the three shows

36. ADJUSTMENT FOR UNEARNED REVENUE
UNEARNED TICKET REVENUE
TICKET REVENUE
$50,000
$30,000
3 shows x 1,000 tickets for each show = 3,000 tickets
3,000 tickets x $10 per ticket = $30,000

37. ADJUSTMENT FOR UNEARNED REVENUE
UNEARNED TICKET REVENUE
TICKET REVENUE
$50,000
$30,000
$30,000
$30,000 in earned revenue is removed from the
unearned account and put into the revenue account.

38. ADJUSTMENT FOR UNEARNED REVENUE
UNEARNED TICKET REVENUE
TICKET REVENUE
$50,000
$30,000
$30,000
$20,000
Bal.
The remaining balance of $20,000 in season
ticket sales is reported on the Balance Sheet
as a current liability.

39. NORTHERN MICRO CHART OF ACCOUNTS
Let’s review the
Chart of Accounts
for a merchandising
business!

40. NORTHERN MICRO CHART OF ACCOUNTS
Assets
Current Assets
101 Cash
122 Accts. Rec.
131 Merch. Inv.
141 Supplies
145 Prepaid Ins.
Assets now include
Merchandise Inventory

41. NORTHERN MICRO CHART OF ACCOUNTS
Assets
Current Assets
101 Cash
122 Accts. Rec.
131 Merch. Inv.
141 Supplies
145 Prepaid Ins.
Property, Plant, & Equip
Land
Building
Acc. Depr. - Bldg
Store Equipment
Acc. Depr. - Store Eq

42. NORTHERN MICRO CHART OF ACCOUNTS (cont.)
Liabilities
Current Liabilities
Notes Payable
Accounts Payable
Wages Payable
Utilities Payable
Unearned Sub. Rev.
Long-Term Liabilities
Mortgage Payable
Owner’s Equity
G.L. Fishel, Capital
G.L. Fishel, Drawing

43. NORTHERN MICRO CHART OF ACCOUNTS (cont.)
Utilities Payable
Unearned Sub. Rev.
Long-Term Liabilities
Mortgage Payable
Owner’s Equity
G. L. Fishel, Capital
G. L. Fishel, Drawing
Income Summary

44. NORTHERN MICRO CHART OF ACCOUNTS
Assets
Current Assets
101 Cash
122 Accts. Rec.
131 Merch. Inv.
141 Supplies
145 Prepaid Ins.
Revenue
Sales
Sales Returns & Allow
Other Revenue
Interest Revenue
Rent Revenue
Subscrip. Revenue
Property, Plant, & Equip
Land
Building
Acc. Depr. - Bldg
Store Equipment
Acc. Depr. - Store Eq

45. NORTHERN MICRO CHART OF ACCOUNTS
Assets
Current Assets
101 Cash
122 Accts. Rec.
131 Merch. Inv.
141 Supplies
145 Prepaid Ins.
Revenue
Sales
Sales Returns & Allow
Other Revenue
Interest Revenue
Rent Revenue
Subscrip. Revenue
Property, Plant, & Equip
Expenses
Land
Cost of Goods Sold
Building
Purchases
Acc. Depr. - Bldg
Purch. Ret. & Allow.
Store Equipment
Purchases Discounts
Acc. Depr. - Store Eq
Freight-In

46. NORTHERN MICRO CHART OF ACCOUNTS (cont.)
Liabilities
Operating Expenses
Current Liabilities
Wages Expense
Notes Payable
Advertising Expense
Accounts Payable
Bk Credit Card Exp.
Wages Payable
Rent Expense
Utilities Payable
Supplies Expense
Unearned Sub. Rev.
Telephone Expense
Utilities Expense
Long-Term Liabilities
Insurance Expense
Mortgage Payable
Depr. Exp. - Building
Depr. Exp. - Store Eq.
Owner’s Equity
Misc. Expense
G. L. Fishel, Capital
G. L. Fishel, Drawing

47. NORTHERN MICRO CHART OF ACCOUNTS (cont.)
Utilities Payable
Supplies Expense
Unearned Sub. Rev.
Telephone Expense
Utilities Expense
Long-Term Liabilities
Insurance Expense
Mortgage Payable
Depr. Exp. - Building
Depr. Exp. - Store Eq.
Owner’s Equity
Misc. Expense
G. L. Fishel, Capital
G. L. Fishel, Drawing
Other Expenses
Interest Expense
Income Summary

48. PREPARING A WORK SHEET: 5 STEPS
Prepare the trial balance.
Prepare the adjustments.
Prepare the adjusted trial balance.
Extend the adjusted trial balance to the Income Statement and Balance Sheet columns.
Complete the work sheet by totaling the Income Statement and Balance Sheet columns to compute the net income or loss.

49. Let’s look at a work sheet for a merchandising business!
Name of Company Work Sheet
For Year Ended December 31, 20--
TRIAL BALANCE
ACCOUNT TITLE
DEBIT
CREDIT
Let’s look at a
work sheet for a
merchandising
business!

50. STEP #1 Prepare a ASSETS are listed in the debit column. Trial Balance
Name of Company Work Sheet
For Year Ended December 31, 20--
TRIAL BALANCE
ACCOUNT TITLE
DEBIT
CREDIT
STEP #1
ASSETS are listed
in the debit column.
Prepare a
Trial Balance
Assets

51. STEP #1 Prepare a BEGINNING balance Trial Balance of merchandise
Name of Company Work Sheet
For Year Ended December 31, 20--
TRIAL BALANCE
ACCOUNT TITLE
DEBIT
CREDIT
STEP #1
BEGINNING balance
of merchandise
inventory
Prepare a
Trial Balance
Assets
Mdse. Inv.

52. LIABILITIES (including unearned revenues) are
Name of Company Work Sheet
For Year Ended December 31, 20--
TRIAL BALANCE
ACCOUNT TITLE
DEBIT
CREDIT
STEP #1
Prepare a
Trial Balance
LIABILITIES (including
unearned revenues) are
listed in the credit column.
Assets
Mdse. Inv.
Liabilities
Unearned Rev.

53. accounts are shown next.
Name of Company Work Sheet
For Year Ended December 31, 20--
TRIAL BALANCE
ACCOUNT TITLE
DEBIT
CREDIT
STEP #1
Prepare a
Trial Balance
Assets
Mdse. Inv.
Liabilities
OWNER’S EQUITY
accounts are shown next.
Unearned Rev.
Capital
Drawing

54. Income Summary is listed but it has no balance until
ACCOUNT TITLE
TRIAL BALANCE
DEBIT
CREDIT
Drawing
Income Summary
Income Summary is listed
but it has no balance until
the adjustments are entered.

55. Drawing Revenue CONTRA-REVENUE accounts are listed in Sales
ACCOUNT TITLE
TRIAL BALANCE
DEBIT
CREDIT
Drawing
Income Summary
CONTRA-REVENUE
accounts are listed in
the debit column
Revenue
Sales
Sales R&A
Sales Discounts

56. accounts are listed next.
ACCOUNT TITLE
TRIAL BALANCE
DEBIT
CREDIT
Drawing
Income Summary
Revenue
Sales
Sales R&A
Sales Discounts
COST OF GOODS SOLD
accounts are listed next.
Expenses
Purchases
Purch. R&A
Purch. Disc.
Freight-In

57. STEP #1 STEP #2 Prepare a Prepare the Trial Balance Adjustments Assets
Name of Company Work Sheet
For Year Ended December 31, 20--
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
STEP #1
STEP #2
Prepare a
Prepare the
Trial Balance
Adjustments
Assets
Mdse. Inv. EI BI
Liabilities
The Beginning Inventory is removed from
and the Ending Inventory is entered into
the Merchandise Inventory account.
Unearned Rev.
Capital
Drawing

58. Income Summary is debited for the amount
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Drawing
Income Summary BI EI
Revenue
Sales
Income Summary is debited for the amount
of the Beginning Inventory and credited
for the amount of the Ending Inventory.
Sales R&A
Sales Discounts
Expenses
Purchases
Purch. R&A
Purch. Disc.
Freight-In

59. STEP #2 STEP #3 Prepare the Prepare the Adjustments Adj. Trial Bal.
Name of Company Work Sheet
For Year Ended December 31, 20--
ADJUSTMENTS
ADJ. TRIAL BAL.
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
STEP #2
STEP #3
Prepare the
Prepare the
Adjustments
Adj. Trial Bal.
Assets
Merchandise Inv. EI BI EI
The Ending Inventory is now the balance
of the Merchandise Inventory account
and is extended to the Adjusted Trial
Balance columns.

60. The Liabilities are extended to the Adjusted Trial Balance columns.
Name of Company Work Sheet
For Year Ended December 31, 20--
ADJUSTMENTS
ADJ. TRIAL BAL.
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
STEP #2
STEP #3
Prepare the
Prepare the
Adjustments
Adj. Trial Bal.
Assets
Merchandise Inv. EI BI EI
Liabilities
Unearned Rev.
The Liabilities are extended to the
Adjusted Trial Balance columns.

61. Owners Equity accounts are Adjusted Trial Balance
Name of Company Work Sheet
For Year Ended December 31, 20--
ADJUSTMENTS
ADJ. TRIAL BAL.
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
STEP #2
STEP #3
Prepare the
Prepare the
Adjustments
Adj. Trial Bal.
Assets
Merchandise Inv. EI BI EI
Liabilities
Owners Equity accounts are
also extended to the
Adjusted Trial Balance
columns.
Unearned Rev.
Capital
Drawing

62. BOTH the Beginning and the Ending Inventories are extended into the
ADJUSTMENTS
ADJ. TRIAL BAL.
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Income Summary BI EI BI EI
BOTH the Beginning and the Ending
Inventories are extended into the
Adjusted Trial Balance.

63. All the Revenue and Expense accounts are extended to
ADJUSTMENTS
ADJ. TRIAL BAL.
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Income Summary BI EI BI EI
Revenue
All the Revenue and Expense
accounts are extended to
the Adjusted Trial Balance.
Sales
Sales R&A
Sales Discounts
Expenses
Purchases
Purch. R&A
Purch. Disc.
Freight-In

64. The Assets (including the ending balance of Merchandise
Name of Company Work Sheet
For Year Ended December 31, 20--
ADJ. TRIAL BAL.
INCOME STATEMENT
BALANCE SHEET
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
STEP #3
STEP #4
Prepare the
Extend Adjusted
Adj. Trial Bal.
Account Balances
Assets
Assets EI EI
Liabilities
Unearned Rev.
The Assets (including the ending
balance of Merchandise
Inventory) are extended to
the Balance Sheet columns.
Capital
Drawing

65. STEP #3 STEP #4 Prepare the Extend Adjusted Adj. Trial Bal.
Name of Company Work Sheet
For Year Ended December 31, 20--
ADJ. TRIAL BAL.
INCOME STATEMENT
BALANCE SHEET
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
STEP #3
STEP #4
Prepare the
Extend Adjusted
Adj. Trial Bal.
Account Balances
Assets
Assets EI EI
Liabilities &
Owner’s Equity
accounts are also
extended to the
Balance Sheet columns.
Liabilities
Liabilities
Unearned Rev.
Unearned Rev.
Capital
Capital
Drawing
Drawing

66. BOTH the Beginning and the Ending inventories are extended to the
ADJ. TRIAL BAL
INCOME STATEMENT
BALANCE SHEET
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT BI EI BI EI
Revenue
Sales
BOTH the Beginning and the Ending
inventories are extended to the
Income Statement columns for the
INCOME SUMMARY account.
Sales R&A
Sales Discounts
Expenses
Purchases
Purch. R&A
Purch. Disc
Freight-In

67. Revenue & Expenses are extended to the Income Statement columns.
ADJ. TRIAL BAL
INCOME STATEMENT
BALANCE SHEET
DEBIT
Revenue & Expenses are extended
to the Income Statement columns.
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT BI EI BI EI
Revenue
Revenue
Sales
Sales
Sales R&A
Sales R&A
Sales Discounts
Sales Discounts
Expenses
Expenses
Purchases
Purchases
Purch. R&A
Purch. R&A
Purch. Disc
Purch. Disc
Freight-In
Freight-In

68. COMPLETE THE WORK SHEET
ADJ. TRIAL BAL
INCOME STATEMENT
BALANCE SHEET
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
Sales Discounts
Sales Discounts
Expenses
Expenses
Purchases
Purchases
Purch. R&A
Purch. R&A
Purch. Disc.
Purch. Disc.
Freight-In
Freight-In
STEP #5
COMPLETE THE WORK SHEET
(1) Sum columns
(2) Compute net income (loss)
Net Income
Net Income

69. COMPLETE THE WORK SHEET
ADJ. TRIAL BAL
INCOME STATEMENT
BALANCE SHEET
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
Sales Discounts
Sales Discounts
Expenses
Expenses
Purchases
Purchases
Purch. R&A
Purch. R&A
Purch. Disc.
Purch. Disc.
Freight-In
Freight-In
STEP #5
COMPLETE THE WORK SHEET
(1) Sum columns
(2) Compute net income (loss)
Net Income
Net Loss
Net Loss
Net Income