The accounting worksheet starts with a column for the trial balance. The second column records debits and credits to the accounts in the trial balance that require adjustments.
Name the accounts that generally require adjustments.
Following the adjusting entries, the column titled Adjusted Trial Balance includes all of the accounts from the Trial Balance column plus any changes or additions in the Adjustment column. The Adjusted Trial Balance column provides the account balances for the final columns which report balances for the financial statements.
Know where to carry each of the balances in the Adjusted Trial Balance when preparing the columns for the financial statements.
The accounting worksheet is explained in greater detail in The Work Sheet on pages 191-198. Specific guidance for preparing financial statements from the worksheet is provided in Preparing Financial Statements from the Worksheet on pages 199-200.
The closing process has four steps.
Before you attempt the final exam, practice journalizing the four steps to the closing process when revenues exceed expenses.
The third step of the closing process will debit Income Summary and credit the capital account when a company's revenues exceed expenses. In the event of a net loss, the third step of the closing process will credit Income Summary and debit the capital account. Practice journalizing the four steps to the closing process when expenses exceed revenues.
Review the closing process in The Closing Process on pages 201-209.
Be sure you understand these terms as you study for the final exam. Try to think of the reason why each term is included.