1. STEP 4: WORKSHEET AND TRIAL BALANCE

2. RECORDING A TRIAL BALANCE ON A WORK SHEET LESSON 14-22 page 410 1 3 2 1.Account title 2.Account balance 3.Total, prove, and rule the debit and credit columns

3. ASSIGNMENT Page 414 14-2 On your own and work together.

4. ADJUSTMENTS

5. 5LESSON 14-3 MERCHANDISE INVENTORY page 415

6. 6LESSON 14-3 ANALYZING AND RECORDING A MERCHANDISE INVENTORY ADJUSTMENT 1 2 3 3 page 416 1.Write the debit amount. 3.Label the two parts of this adjustment with a small letter d in parentheses. 2.Write the credit amount.

7. 7LESSON 14-3 ANALYZING AN ADJUSTMENT WHEN ENDING MERCHANDISE INVENTORY IS GREATER THAN BEGINNING MERCHANDISE INVENTORY page 417 Jan. 1 Bal.294,700.00 Adj. (d)4,200.00 (New Bal.298,900.00) Merchandise Inventory Adj. (d)4,200.00 Income Summary

8. ASSIGNMENTS Page 418 – Work Together and On Your Own 14-3

9. 9LESSON 14-4 ALLOWANCE METHOD OF RECORDING LOSSES FROM UNCOLLECTIBLE ACCOUNTS page 419

10. 10 LESSON 14-4 Estimated Uncollectible Accounts Expense =Percentage× Total Sales on Account $1,245.00=1%×$124,500.00 ESTIMATING UNCOLLECTIBLE ACCOUNTS EXPENSE page 420

11. 11LESSON 14-4 1.Enter the estimated uncollectible amount. ANALYZING AND RECORDING AN ADJUSTMENT FOR UNCOLLECTIBLE ACCOUNTS EXPENSE 3.Label the two parts with a small letter e in parentheses. 1 2 3 3 page 421 2.Enter the same amount in the Adjustments Debit column.

12. ASSIGNMENTS Page 422 On your Own and Work Together 14-4

13. 13LESSON 14-5 CALCULATING DEPRECIATION EXPENSE AND BOOK VALUE Estimated Total Depreciation Expense = Estimated Salvage Value – Original Cost $1,000.00=$250.00–$1,250.00 Annual Depreciation Expense = Years of Estimated Useful Life ÷ Estimated Total Depreciation Expense $200.00=5÷$1,000.00 1.Subtract the asset’s estimated salvage value from original cost. 2.Divide the estimated total depreciation expense by the years of estimated useful life. 1 2

14. 14LESSON 14-5 CALCULATING DEPRECIATION EXPENSE AND BOOK VALUE page 424 20X3 Accumulated Depreciation = 20X3 Depreciation Expense + 20X2 Accumulated Depreciation $600.00=$200.00+$400.00 Ending Book Value = Accumulated Depreciation –Original Cost $650.00=$600.00–$1,250.00 (continued from previous slide)

15. 15LESSON 14-5 ANALYZING AND RECORDING ADJUSTMENTS FOR DEPRECIATION EXPENSE page 425 1 2 3 3 1.Write the debit amounts. 2.Write the credit amounts. 3.Label the adjustments.

16. ASSIGNMENT Review Pages 423 -426 Complete Page 426 – ALL

17. SUMMARY ASSIGNMENT Page 439 14-7