1. LESSON 6-2 Planning Adjusting Entries on a Work Sheet
5/3/2019
LESSON 6-2
Planning Adjusting Entries on a Work Sheet
GREEN

2. LESSON 6-2

3. LESSON 6-2

4. LESSON 6-2

5. The matching debit would be Supplies Expense
Ms. Park counted the supplies on hand and found the value of supplies still unused on Aug 31 was $ of the $1,025 she purchased
If there are $310 unused/left supplies in cabinet and she bought $1,025, then she must have used $715 of supplies. THIS IS TechKnow’s SUPPLIES EXPENSE.
In order to show Kim has decreased this amount of supplies, she would credit Supplies for the used amount. (credit because Supplies is an Asset and these decrease on the credit side.
The matching debit would be Supplies Expense
Kim wants the ending monthly balance of Supplies to be what she has on hand – not used
LESSON 6-2

6. LESSON 6-2

7. LESSON 6-2

8. 496400
10000
15000
11000
10000
102500
120000
20000
5000
500000
62500
356500
21300
2800
30000
(a) 71500
LESSON 6-2

9. LESSON 6-2

10. Insurance is usually PRE-paid and for a whole year.
Kim Park has paid $1,200 for a full year of insurance.
Basically $100 a month
Now that a full month of business (August) has past, insurance is now valued $1,100— because August’s cost was $100. THIS IS TechKnow’s INSURANCE EXP.
In order to show she has decreased the value of prepaid insurance, we would credit this acc’t. It is a credit because assets decrease on the credit side.
The matching debit would be Insurance Expense
You want the value of the insurance to be the balance of the Prepaid insurance ledger acc’t.
LESSON 6-2

11. PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET
page 159
LESSON 6-2

12. USED PORTION Matching Debit 13 496400 10000 15000 11000 102500 120000
500000
62500
356500
21300
2800
30000
(a) 71500
USED PORTION
(b) 10000
Matching Debit
881500
881500
LESSON 6-2

13. PROVING THE ADJUSTMENTS COLUMNS OF A WORK SHEET
page 160 1 2 3
1. Rule a single line.
2. Add both the Adjustments Debit and Credit columns. Write each column’s total.
3. Rule double lines.
LESSON 6-2

14. PREPARING A WORK SHEET 1. Write the heading.
page 160 C
1. Write the heading.
2. Record the trial balance.
3. Record the supplies adjustment.
4. Record the prepaid insurance adjustment.
5. Prove the Trial Balance and Adjustments columns.
LESSON 6-2

15. TERM REVIEW
page 161
adjustments
LESSON 6-2