1. Chapter 9.1 Adjusting Entries Trial Balance Some amounts on the trial balance are out of date

2. Chapter 9.1 Adjusting Entries Supplies The Supplies balance shows the total supplies purchased in the year

3. Chapter 9.1 Adjusting Entries What is What the balance is

4. Chapter 9.1 Adjusting Entries What Should be What the balance should be What the balance “should be” is determined from someone counting the supplies that remain in the business at the end of the year

5. Chapter 9.1 Adjusting Entries The Adjustment The required adjustment

6. Chapter 9.1 Adjusting Entries Expense What is What the balance is The income statement account related to Supplies is shown above The accounting clerk has not used this account during the year

7. Chapter 9.1 Adjusting Entries Expense What Shoud be What the balance should be What the balance “should be” is the amount of supplies “used up” during the year

8. Chapter 9.1 Adjusting Entries Expense Adjustment The required adjustment

9. Chapter 9.1 Adjusting Entries The adjusting entry as it would appear in the general journal Adjusting Entry

10. Chapter 9.1 Adjusting Entries Prepaid Insurance The Prepaid Insurance balance shows the total cost of insurance bought in the year

11. Chapter 9.1 Adjusting Entries What is What the balance is

12. Chapter 9.1 Adjusting Entries What Should be What the balance should be What the balance “should be” is determined from someone calculating the portion of the insurance policy that is “unexpired”

13. Chapter 9.1 Adjusting Entries The Adjustment The required adjustment

14. Chapter 9.1 Adjusting Entries Expense What is What the balance is The income statement account related to Prepaid Insurance is shown above The accounting clerk has not used this account during the year

15. Chapter 9.1 Adjusting Entries Expense What Should be What the balance should be What the balance “should be” is the amount of the insurance policy that has expired at year’s end

16. Chapter 9.1 Adjusting Entries Expense Adjustment The required adjustment

17. Chapter 9.1 Adjusting Entries Adjusting Journal Entry The adjusting entry for insurance as it would appear in the general journal

18. Chapter 9.1 Adjusting Entries Accounts Payable The Accounts Payable balance does not include two invoices that arrived late

19. Chapter 9.1 Adjusting Entries What is Little analysis is needed for this adjustment

20. Chapter 9.1 Adjusting Entries The adjustment Simply enter the late invoices

21. Chapter 9.1 Adjusting Entries The second adjustment Simply enter the late invoices

22. Chapter 9.1 Adjusting Entries What Should be And calculate the adjusted balance

23. Chapter 9.1 Adjusting Entries Expense What is

24. Chapter 9.1 Adjusting Entries The Adjustments

25. Chapter 9.1 Adjusting Entries The What Should bes

26. Chapter 9.1 Adjusting Entries The General journal The adjusting entry for late invoices as it would appear in the general journal

27. Chapter 9.1 Adjusting Entries The adjusting entries have brought balance sheet accounts up to date Summary 1 Adjusting Entries—Summary Balance Sheet

28. Chapter 9.1 Adjusting Entries And have recorded expenses in related accounts on the income statement Summary 2 Adjusting Entries—Summary Balance Sheet Income Statement