1. Recording Adjusting Entries

2. LESSON 16-1 2 3 page 480 214567 1.Heading 2.Date 3.Identify the first adjustment 4.Account debited 5.Debit 6.Account credited 7.Credit 8.Continue down the Adjustments columns

3. LESSON 16-1 3

4. 4

5. 5 page 483

6. LESSON 16-1 6 page 483

7. LESSON 16-1 7 page 484

8. LESSON 16-1 8

9. 9

10. 10 page 485

11. Recording Closing Entries for Income Statement Accounts

12. LESSON 16-2 12 page 487

13. LESSON 16-2 13 1 2 page 488 3.Debits to close 4 1.Heading 2.Date4.Credit to Income Summary 33

14. LESSON 16-2 14 1 24 page 489 3.Credits to close 1.Date 2.Account debited 4.Debit amount 3 3

15. LESSON 16-2 15 page 490 Bal.209,960.00Closing 209,960.00 (New Bal. zero) Purchases Adj. (mdse. inv.)15,840.00Closing (credit amounts)500,253.10 Closing (debit accounts)404,099.15(New Bal.80,313.95) Income Summary

16. LESSON 16-2 16 page 491 1 2 3 3.Credit Retained Earnings 1.Date 2.Debit Income Summary

17. LESSON 16-2 17 page 491 3.Credit Dividends 1.Date 2.Debit Retained Earnings 1 2 3

18. LESSON 16-2 18 page 492

19. Preparing a Post-Closing Trial Balance

20. LESSON 16-3 20 3.Balances of asset accounts 4.Balances contra asset, liability, and capital accounts 1 6 page 496 7.Double lines 6.Totals 5.Word Totals 2.Accounts that have balances 1.Heading 2 3 4 7 5

21. LESSON 16-3 21 1 2 3 4 5 page 497 (continued on next slide) 1.Source documents are checked, and transactions are analyzed. 2.Transactions are recorded in journals. 3.Journal entries are posted to the accounts payable ledger, the accounts receivable ledger, and the general ledger. 4.Schedules of accounts payable and account receivable are prepared from the subsidiary ledgers. 5.A work sheet is prepared from the general ledger.

22. LESSON 16-3 22 6. Financial statements are prepared. page 497 (continued from previous slide) 6 7 8 9 9.A post-closing trial balance of the general ledger is prepared. 8.Adjusting and closing entries are posted to the general ledger. 7.Adjusting and closing entries are journalized from the work sheet.