1. An introduction

2.  Has eight columns  New columns are for adjustments  Adjustments columns come right after trial balance and before income statement  Calculate the amount of the adjustment before recording on the worksheet

4.  The amount of the supplies is $1000 on the trial balance  The amount of supplies on hand is $700.  The amount of the supplies used is Supplies – Supplies still on hand  Amount of the adjustment is $1000 - $700 or $300

5.  The amount of Prepaid Insurance on the trial balance is $1750  The amount of Insurance that has not expired and is still Prepaid is $800  The amount of the Insurance Expense is $1750 - $800 or $950

6.  There is two late arriving invoices for:  Car Expense $75  General Expense $100  Expense are both debits with a single credit to Accounts Payable for $175

7.  Once you have calculated all of the adjustments, you are ready to complete the worksheet  The difference from what we have done before is the Adjustments section  Completing the rest of the worksheet is the same as we have already learned.

8. Recording Supplies Expense

9. Recording Insurance Expense

10. Recording Late Arriving Invoices

11. Totaling the Adjustments Columns

12. Extending the Columns—add like and subtract unlike

13. Determine Net Income or Net Loss

14. Balance and Rule the Worksheet