1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 14-2 Beginning an 8-Column Work Sheet for a Merchandising Business  Entering and recording a trial balance on a work sheet  Planning adjustments on a work sheet  Analyzing and recording supplies adjustments  Analyzing and recording a prepaid insurance adjustment

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Merchandising Business 2 LESSON 14-2 Objectives: 65 Generate trial balance and end of period adjustments for a merchandising business 71 Summarize the progression from source documents to journals to ledgers to financial reports for a merchandising business

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 14-2 RECORDING A TRIAL BALANCE ON A WORK SHEET page 410 1 3 2 1.Account title 2.Account balance 3.Total, prove, and rule the debit and credit columns

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 14-2 ANALYZING AND RECORDING SUPPLIES ADJUSTMENTS page 411 Adj. (a)2,730.00 Supplies Expense—Office Dec. 31 Bal.3,480.00Adj. (a)2,730.00 (Adj Bal. 750.00) Supplies — Office Adj. (b)2,910.00 Supplies Expense — Store Dec. 31 Bal.3,944.00Adj. (b) 2,910.00 (Adj Bal.1,034.00) Supplies — Store

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 14-2 RECORDING SUPPLIES ADJUSTMENTS ON A WORK SHEET page 412 2 1 1.Write the debit amounts in the Adjustments Debit column. 2.Write the credit amounts in the Adjustments Credit column. 3.Label the two parts of the Supplies—Office adjustment with small letter a and small letter b in parentheses. 3 3

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 14-2 ANALYZING AND RECORDING A PREPAID INSURANCE ADJUSTMENT 1 2 3 3 page 413 1.Enter the amount of insurance used in the Adjustments Credit column. 2.Enter the same amount in the Adjustments Debit column. 3.Label the two parts of the adjustment with a small letter c in parentheses.