1. LESSON 8-1 Recording Adjusting Entries
5/22/2019
LESSON 8-1
Recording Adjusting Entries
GREEN

2. ADJUSTING ENTRY FOR SUPPLIES
page 202
1. Write the heading.
2. Write the date.
3. Write the title of the account debited. Record the debit amount. 1
4. Write the title of the account credited. Record the credit amount. 3 2 4
LESSON 8-1

3. ADJUSTING ENTRY FOR PREPAID INSURANCE
page 204
1. Write the date.
2. Write the title of the account debited. Record the debit amount.
3. Write the title of the account credited. Record the credit amount. 1 2 3
LESSON 8-1

4. TERM REVIEW
page 205
adjusting entries – journal entries recorded to update general ledger accounts at the end of a fiscal period
LESSON 8-1

5. LESSON 8-2 Recording Closing Entries
5/22/2019
LESSON 8-2
Recording Closing Entries
GREEN

6. NEED FOR THE INCOME SUMMARY ACCOUNT
page 207
LESSON 8-2

7. CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE
page 208
(Debit to close) 1 2 3 4
1. Write the heading.
2. Write the date.
3. Write the title of the account debited. Record the debit amount.
4. Write the title of the account credited. Record the credit amount.
LESSON 8-2

8. CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES
page 209
(Credit to close)
1. Date
2. Income Summary
3. Credit
4. Debit amount 2 4 1 3
LESSON 8-2

9. CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT
page 210
1. Date
2. Debit
(Income Summary: debit to close)
(Capital: credit to record net income)
3. Credit 1 2 3
LESSON 8-2

10. CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT
LESSON 8-2
5/22/2019
CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT
page 211
1. Date
(Credit to close)
2. Debit
3. Credit 1 2 3
LESSON 8-2
GREEN

11. TERMS REVIEW
page 212
permanent accounts – accounts that accumulate information from one fiscal period to the next
temporary accounts – accounts used to accumulate information until it is transferred to the owner’s capital account
closing entries – journal entries used to prepare temporary accounts for a new fiscal period
LESSON 8-2

12. LESSON 8-3 Preparing a Post-Closing Trial Balance
5/22/2019
LESSON 8-3
Preparing a Post-Closing Trial Balance
GREEN

13. GENERAL LEDGER ACCOUNTS AFTER ADJUSTING AND CLOSING ENTRIES ARE POSTED
LESSON 8-3
5/22/2019
GENERAL LEDGER ACCOUNTS AFTER ADJUSTING AND CLOSING ENTRIES ARE POSTED
page 213
LESSON 8-3
GREEN

14. POST-CLOSING TRIAL BALANCE
page 216
1. Heading 4 1
2. Account titles
3. Account balances 2 3
4. Single rule
5. Compare totals
6. Totals
7. Record totals 6 7
8. Double rule 8 5
LESSON 8-3

15. ACCOUNTING CYCLE FOR A SERVICE BUSINESS
page 217
1. Analyzes transactions 1
2. Journalize 2
3. Post 8
4. Prepare work sheet
5. Prepare financial statements 3
6. Journalize adjusting and closing entries 7 4
7. Post adjusting and closing entries
8. Prepare post-closing trial balance 6 5
LESSON 8-3

16. TERMS REVIEW
page 219
post-closing trial balance – a trial balance prepared after the closing entries are posted
accounting cycle – the series of accounting activities included in recording financial information for a fiscal period
LESSON 8-3