Accounting IAccounting I

Chapter 15 – Work Sheet for a Merchandising

Business

TTERMS REVIEWERMS REVIEWinventory

merchandise inventory

Lesson 15-1, page 371Lesson 15-1, page 371

TTERMS REVIEWERMS REVIEW

InventoryInventory

The amount of goods on hand.

Lesson 15-1, page 368Lesson 15-1, page 368

TTERMS REVIEWERMS REVIEW

Merchandise InventoryMerchandise Inventory

The amount of goods on hand for sale to customers.

Lesson 15-1, page 368Lesson 15-1, page 368

33. Total, prove, and rule

the debit and credit columns.

1. Write the titles of the general ledger accounts.

2. Write the balance of each account.

1

1 2

2

TRANSFERRING GENERAL TRANSFERRING GENERAL LEDGER ACCOUNT BALANCES LEDGER ACCOUNT BALANCES TO A WORK SHEETTO A WORK SHEET

RECORDING A TRIAL RECORDING A TRIAL BALANCE ON A WORK SHEETBALANCE ON A WORK SHEET

Lesson 15-1, page 366-368Lesson 15-1, page 366-368

PLANNING ADJUSTMENTS ON A WORK SHEETPLANNING ADJUSTMENTS ON A WORK SHEET

Jan. 1 Bal. 270,480.00

Merchandise Inventory

Debit Credit

Merchandise Inventory

Lesson 15-1, page 368Lesson 15-1, page 368

BEFORE ADJUSTMENTSAFTER ADJUSTMENTS

Income Summary

Jan 1 Bal. 270,480.00Jan 1 Bal. 270,480.00(New Bal. 254,640.00)

ANALYZING A MERCHANDISE INVENTORY ANALYZING A MERCHANDISE INVENTORY ADJUSTMENTADJUSTMENT

Adj. (a) 15,840.00

Merchandise Inventory

Adj. (a) 15,840.00

Lesson 15-1, page 369Lesson 15-1, page 369

RECORDING A MERCHANDISE INVENTORY RECORDING A MERCHANDISE INVENTORY ADJUSTMENTADJUSTMENT

1

2

3. Label the two parts of this adjustment.

1. Write the debit amount.

2. Write the credit amount.

3

Lesson 15-1, page 370Lesson 15-1, page 370

ANALYZING AN ADJUSTMENT WHEN ENDING ANALYZING AN ADJUSTMENT WHEN ENDING MERCHANDISE INVENTORY IS GREATER THAN MERCHANDISE INVENTORY IS GREATER THAN BEGINNING MERCHANDISE INVENTORYBEGINNING MERCHANDISE INVENTORY

AFTER ADJUSTMENT

Income Summary

Jan 1 Bal. 294,700.00Adj. (a) 4,200.00

Merchandise Inventory

Adj. (a) 4,200.00

Lesson 15-1, page 370Lesson 15-1, page 370

(New Bal. 298,900.00)

Work Together &Work Together &On Your Own – On Your Own –

Page 371-372Page 371-372

BEFORE ADJUSTMENTAFTER ADJUSTMENT

Dec. 31 Bal. 6,480.00Dec. 31 Bal. 6,480.00

Supplies Expense—Office

(New Bal. 1,750.00)

ANALYZING A SUPPLIES ADJUSTMENTANALYZING A SUPPLIES ADJUSTMENT

Adj. (b) 4,730.00

Supplies—Office

Adj. (b) 4,730.00

Lesson 15-2, page 373Lesson 15-2, page 373

RECORDING SUPPLIES ADJUSTMENTSRECORDING SUPPLIES ADJUSTMENTS

1

3

3

2

3. Label the two parts of this adjustment.

1. Write the debit amounts.

2. Write the credit amounts.

Lesson 15-2, page 374Lesson 15-2, page 374

BEFORE ADJUSTMENTAFTER ADJUSTMENT

Dec 31 Bal. 5,800.00Dec 31 Bal. 5,800.00

Insurance Expense

(New Bal. 2,630.00)

ANALYZING A PREPAID INSURANCE ADJUSTMENTANALYZING A PREPAID INSURANCE ADJUSTMENT

Adj. (d) 3,170.00

Prepaid Insurance

Adj. (d) 3,170.00

Lesson 15-2, page 375Lesson 15-2, page 375

RECORDING A PREPAID INSURANCE ADJUSTMENTRECORDING A PREPAID INSURANCE ADJUSTMENT

13

32

3. Label the two parts of this adjustment.

1. Write the debit amount.

2. Write the credit amount.

Lesson 15-2, page 376Lesson 15-2, page 376

Work Together &Work Together &On Your Own – On Your Own –

Page 377Page 377

4. Calculate net income or net loss.

5. Extend net income or net loss to Balance Sheet Debit or Credit column.

1. Extend balance sheet items to Balance Sheet columns.

2. Extend income statement items to Income Statement columns.

COMPLETING AN 8-COLUMN WORK SHEETCOMPLETING AN 8-COLUMN WORK SHEET

2 1

3. Total Income Statement and Balance Sheet columns.

6. Total Income Statement and Balance Sheet columns.

7. Check that totals are in balance.

43

5

6 7 Lesson 15-3, page 378Lesson 15-3, page 378

A 10-COLUMN WORK SHEET FOR A MERCHANDISING A 10-COLUMN WORK SHEET FOR A MERCHANDISING BUSINESS (LEFT PAGE)BUSINESS (LEFT PAGE)

1. Record the trial balance.

2. Plan the adjustments.1 2

Lesson 15-3, page 382Lesson 15-3, page 382

A 10-COLUMN WORK SHEET FOR A MERCHANDISING A 10-COLUMN WORK SHEET FOR A MERCHANDISING BUSINESS (RIGHT PAGE)BUSINESS (RIGHT PAGE)

3. Extend the balances in the Trial Balance columns to the Adjusted Trial Balance columns.

4. Total, prove, and rule the Adjusted Trial Balance columns.

3

4

5

6

5. Extend the amounts in the Adjusted Trial Balance columns to the appropriate Income Statement and Balance Sheet columns.

6. Total, prove, and rule the appropriate Income Statement and Balance Sheet columns.

Lesson 15-3, page 383Lesson 15-3, page 383

Work Together &Work Together &On Your Own – On Your Own –

Page 384Page 384