Professional Documents
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Accounting Cycle
Chapter 4
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-1
Objective 1
Prepare an accounting
work sheet.
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-2
The Accounting Cycle
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-3
The Accounting Cycle
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-4
The Accounting Cycle
Accounts Receivable
Accounts Receivable
1,350
1,350
1,700
1,700
3,050
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-5
The Accounting Cycle
Work Sheet
Cash 12,100
Accounts
receivable 3,050
Balance Income
Sheet Statement
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-6
The Accounting Cycle
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-8
The Accounting Work Sheet
Adjusted
Trial Balance Adjustments Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 12,100
Accounts receivable 1,350
Supplies 250
Equipment 15,500
Accum. depreciation 7,500
Accounts payable 1,200
Salary payable 1,100
Unearned revenue 1,500
Capital 7,200
Withdrawals 1,000
Revenue 23,700
Salary expense 12,000
Supplies expense
Depreciation expense
Totals 42,200 42,200
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 4-9
The Accounting Work Sheet
Closing Entries
Expenses
Revenues and
increase Withdrawals
Owner’s decrease
Equity. Owner’s
Equity.
Income Summary
A debit A credit
balance balance
represents represents
net loss. net income.