century 21 accounting © 2009 south-western, cengage learning lesson 4-5 end-of-period work for a...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 4-5LESSON 4-5
End-of-Period Work for a Departmentalized Business
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Chapter 4 ObjectivesChapter 4 ObjectivesFinancial Reporting for a Financial Reporting for a Departmentalized BusinessDepartmentalized Business
After studying Chapter 4, you will be able to:Define accounting terms related to cost accounting and financial reporting for a departmentalized merchandising business.Identify accounting concepts and practices related to cost accounting and financial reporting for a departmentalized merchandising business.Distinguish between direct and indirect expenses.Prepare an interim departmental statement of gross profit.Prepare a work sheet for a departmentalized merchandising business.Prepare financial statements for a departmentalized merchandising business.Analyze financial statements using selected component percentages.Complete end-of-period work for a departmentalized merchandising business.
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LESSON 4-4
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Lesson 4-5Lesson 4-5
adjusting entries: journal entries recorded to update general ledger accounts at the end of a fiscal period
closing entries: journal entries used to prepare temporary accounts for a new fiscal period
post-closing trial balance: a trial balance prepared after the closing entries are posted
accounting cycle: the series of accounting activities included in recording financial information for a fiscal period
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LESSON 4-5
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-5
2. Enter the adjusting entries without additional explanation.
JOURNALIZING ADJUSTING ENTRIES FOR A JOURNALIZING ADJUSTING ENTRIES FOR A DEPARTMENTALIZED BUSINESSDEPARTMENTALIZED BUSINESS page 118
1. Write Adjusting Entries in the Account Title column.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-5
JOURNALIZING CLOSING ENTRIES FOR A JOURNALIZING CLOSING ENTRIES FOR A DEPARTMENTALIZED BUSINESSDEPARTMENTALIZED BUSINESS page 119
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1. Write Closing Entries in Account Title column.
2. Record entry to close income statement accounts with credit balances.
3. Write (continued on general journal page 15) to show that the closing entries are continued.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-5
JOURNALIZING CLOSING ENTRIES FOR A JOURNALIZING CLOSING ENTRIES FOR A DEPARTMENTALIZED BUSINESSDEPARTMENTALIZED BUSINESS page 120
4. Write Closing Entries (continued) in the Account Title column.
5. Record entry to close income statement accounts with debit balances.
6. Record entry to close Income Summary to Retained Earnings.
7. Record entry for Dividends.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-5
POST-CLOSING TRIAL BALANCE FOR A POST-CLOSING TRIAL BALANCE FOR A DEPARTMENTALIZED BUSINESSDEPARTMENTALIZED BUSINESS page 122
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-5
2. Record entries in journals.
SUMMARY OF ACCOUNTING CYCLESUMMARY OF ACCOUNTING CYCLE page 123
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993. Post journal entries to the ledgers.
9. Prepare a post-closing trial balance.
8. Journalize and post adjusting and closing entries.
7. Prepare financial statements.
6. Prepare a trial balance on the work sheet.
5. Prepare schedules of accounts receivable and accounts payable from the subsidiary ledgers.
4. Prepare interim departmental statement of gross profit.
1. Verify source documents for accuracy.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-5
DEFINE TERMS REVIEWDEFINE TERMS REVIEWIn QuizletIn Quizlet
adjusting entries closing entries post-closing trial balance accounting cycle
page 117
Edit this set: Chapter 4 AdvAcc (then SAVE)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Exit Ticket for today:Exit Ticket for today:Audit Your Understanding 4-5Audit Your Understanding 4-5
1. What is the purpose of adjusting entries?
2. Which accounts are closed at the end of an accounting period?
3. What is the purpose of a post-closing trial balance?
4. Which accounting activities in the accounting cycle are performed at the end of a fiscal period?
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LESSON 4-5
In a Word Document, SaveAS: Chapter4-5AYUYourNameAnd drop in my Inbox today!
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Complete the following assignments for Complete the following assignments for Chapter 4-5 todayChapter 4-5 today
Define Terms Review on page 124. Answer Audit Your Understanding questions on page
124. Complete Work Together 4-5 on Aplia – page 124. Complete On Your Own 4-5 on Aplia – page 124. Complete Application Problem 4-5 on Aplia – page
128.
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LESSON 4-5