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Chapter 6 Notes

CENTURY 21 ACCOUNTING (c) 2009 South-Western, Cengage Learning LESSON 6-1 Creating a Worksheet. LESSON 6-2 PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET page 159 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment.

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578 views

Chapter 6 Notes

CENTURY 21 ACCOUNTING (c) 2009 South-Western, Cengage Learning LESSON 6-1 Creating a Worksheet. LESSON 6-2 PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET page 159 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment.

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LESSON 6-1

Creating a Worksheet

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

PREPARING THE HEADING OF A


WORK SHEET

1
2

page 153

Name of Company

Name of Report

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

Date of Report

LESSON 6-1

PREPARING A TRIAL BALANCE ON A


WORK SHEET
2

3
5

page 154

1. Write the general ledger


account titles.
2. Write the general ledger
debit account balances.
Write the general ledger
credit account balances.
3. Rule a single line across the
two Trial Balance columns.
4
4. Add both the Trial Balance
Debit and Credit columns.
5. Write each columns total
below the single line.
6. Rule double lines across
6 both Trial Balance columns.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-1

TERMS REVIEW

page 155

fiscal period
work sheet
trial balance

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-1

LESSON 6-2
Planning Adjusting Entries
on a Work Sheet

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

SUPPLIES ADJUSTMENT ON A
WORK SHEET

page 158

1. Write the debit amount.


2. Write the credit amount.
3. Label the two parts of this adjustment.
CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

PREPAID INSURANCE ADJUSTMENT


ON A WORK SHEET

page 159

1. Write the debit amount.


2. Write the credit amount.
3. Label the two parts of this adjustment.
CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

PROVING THE ADJUSTMENTS


COLUMNS OF A WORK SHEET

page 160

1
2
1. Rule a single line.
2. Add both the Adjustments Debit and Credit columns.
Write each columns total.
3. Rule double lines.
CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

PREPARING A WORK SHEET

page 160 C

1. Write the heading.


2. Record the trial balance.
3. Record the supplies adjustment.
4. Record the prepaid insurance adjustment.
5. Prove the Adjustments columns.
6. Extend all balance sheet account balances.
7. Extend all income statement account balances.
8. Calculate and record the net income (or net loss).
9. Total and rule the Income Statement and Balance Sheet
columns.
CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

1
2
496400
10000
15000
10000
102500
120000

(a)
(b)

6
71500
10000

20000
5000
500000

62500

356500

356500

21300
(b)

10000

(a)

71500

2800
30000

Net Income

20000
5000
500000

62500

11000
881500 881500

10000
31000
110000

81500

21300
10000
2800
7
30000
71500
5
11000
81500 146600 356500 734900 525000
209900
209900
356500 356500 734900 734900

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

TERM REVIEW

page 161

adjustments

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-2

LESSON 6-3
Extending Financial
Statement Information
on a Work Sheet

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

EXTENDING BALANCE SHEET ACCOUNT


BALANCES ON A WORK SHEET

page 162

1. Debit balances without adjustments


2. Debit balances with adjustments
3. Credit balances without adjustments
CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-3

EXTENDING INCOME STATEMENT ACCOUNT


BALANCES ON A WORK SHEET

page 163

3
1. Sales balance
2. Expense balances without adjustments
3. Expense balances with adjustments
CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-3

RECORDING NET INCOME, AND TOTALING


page 164
AND RULING A WORK SHEET

1. Single rule
2. Totals
3. Net income

3
4. Extend net income
5. Single rule

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

6. Totals
7. Double rule
LESSON 6-3

CALCULATING AND RECORDING A NET


LOSS ON A WORK SHEET

page 165

1
3

1.
2.
3.
4.

Single rule
Totals
Net loss
Extend net loss

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-3

TERMS REVIEW

page 166

balance sheet
income statement
net income
net loss

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-3

LESSON 6-4
Finding and Correcting
Errors on the Work Sheet

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

CORRECTING AN ERROR IN POSTING


TO THE WRONG ACCOUNT

page 168

2 Correct entry

1 Incorrect entry
1. Draw a line through the entire incorrect entry. Recalculate the account
balance and correct the work sheet.
2. Record the posting in the correct account. Recalculate the account
balance, and correct the work sheet.
CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-4

CORRECTING AN INCORRECT AMOUNT

page 169

2
1

1. Draw a line through the incorrect amount.


2. Write the correct amount just above the correction in the same space.
3. Recalculate the account balance, and correct the account balance on
the work sheet.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-4

CORRECTING AN AMOUNT POSTED TO


THE WRONG COLUMN

page 169

2
1

3
5

4. Draw a line through the incorrect item in the account.


5. Record the posting in the correct amount column.
6. Recalculate the account balance, and correct the work sheet.

CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning

LESSON 6-4

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