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Accounting I

Accounting I. Chapter 9 – Recording Adjusting & Closing Entries for a Service Business. T ERMS REVIEW. adjusting entries permanent accounts temporary accounts closing entries. Lesson 9-2, page 209. T ERMS REVIEW. Adjusting Entries.

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Accounting I

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  1. Accounting I Chapter 9 – Recording Adjusting & Closing Entries for a Service Business

  2. TERMS REVIEW adjusting entries permanent accounts temporary accounts closing entries Lesson 9-2, page 209

  3. TERMS REVIEW Adjusting Entries Journal entries recorded to update general ledger accounts at the end of a fiscal period. Lesson 9-1, page 198

  4. TERMS REVIEW Permanent Accounts Accounts used to accumulate information from one fiscal period to the next. Lesson 9-2, page 203

  5. TERMS REVIEW Temporary Accounts Accounts used to accumulate information until it is transferred to the owner’s capital account. Lesson 9-2, page 203

  6. TERMS REVIEW Closing Entries Journal entries used to prepare temporary accounts for a new fiscal period. Lesson 9-2, page 203

  7. 3 4 ADJUSTING ENTRY FOR SUPPLIES 1 2 1. Write the heading. 2. Write the date. 3. Record the debit. 4. Record the credit. Lesson 9-1, page 200

  8. 2 3 ADJUSTING ENTRY FOR PREPAID INSURANCE 1 1. Write the date. 2. Record the debit. 3. Record the credit. Lesson 9-1, page 201

  9. Work Together & On Your Own – Page 202

  10. 3 (Debit to close) 4 CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE 1 2 1. Write the heading. 2. Write the date. 3. Record the debit. 4. Record the credit. Lesson 9-2, page 205

  11. (Credit to close) 3 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1. Write the date. 2. Income Summary. 3. Record the credit. 4. Record the debit. 2 4 1 Lesson 9-2, page 206

  12. (Capital: credit to record net income) (Income Summary: debit to close) 2 3 CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT 1 1. Write the date. 2. Record the debit. 3. Record the credit. Lesson 9-2, page 207

  13. (Capital: credit to close) 2 3 CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT 1 1. Write the date. 2. Record the debit. 3. Record the credit. Lesson 9-2, page 208

  14. Work Together & On Your Own – Page 209

  15. TERMS REVIEW post-closing trial balance accounting cycle Lesson9-3, page 215

  16. TERMS REVIEW Post-Closing Trial Balance A trial balance prepared after the closing entries are posted. Lesson 9-3, page 213

  17. TERMS REVIEW Accounting Cycle The series of accounting activities included in recording financial information for a fiscal period. Lesson 9-3, page 214

  18. 3 5 7 POST-CLOSING TRIAL BALANCE 1. Write the heading. 1 2. Write titles of all general ledger accounts with balances in the Account Title column. 2 3. Write each account’s balance. 4 6 8 4. Rule a single line. 5. Compare the two column totals. 6. Write Totals. 7. Write the column totals. 8. Rule double lines. Lesson 9-3, page 213

  19. ACCOUNTING CYCLE FOR A SERVICE BUSINESS 1. Source documents checked for accuracy, and transactions are analyzed. 1 2 2. Transactions are recorded in a journal. 8 3. Journal entries are posted to the general ledger. 3 4. Work sheet is prepared. 5. Financial statements are prepared. 7 4 6. Adjusting and closing entries are journalized. 6 7. Adjusting and closing entries are posted. 5 8. A post-closing trial balance is prepared. Lesson 9-3, page 214

  20. Work Together & On Your Own – Page 215

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