Bookkeeping 22

Question 1

1. What is the last step for completing the Worksheet?

Answer 1

You need to enter each ADJUSTMENT in the GENERAL JOURNAL.

Question 2

2. How do you recognize the ADJUSTMENTS that were made in the Worksheet so they can be transferred to the General Journal?

Answer 2

They are the items that were identified with a letter inside parenthesis (x) in the ADJUSTMENT columns.

Question 3

3. What are the rules for ADJUSTING the Journal Entries?

Answer 3

THERE ARE THREE:

1. To adjust a PREPAID ITEM
2. To adjust a PAYABLE.
3. To show a DEPRECIATION adjustment.

Question 4

4. How do you make the adjustment for a PREPAID ITEM? To adjust a prepaid item that has been consumed through the passage of time, you:

Answer 4

INCREASE THE EXPENSE with a Debit and DECREASE the asset with a Credit:

Rent Expense………Dr.
Prepaid Rent………Cr.

••••••••••••••••••••••••••••••••••••••••••••••••••

Question 5

5. How do you make the ADJUSTMENT for a PAYABLE?

Answer 5

Increase the EXPENSE with a DEBIT and increase the PAYABLE with a CREDIT:

Salaries Expense………Dr
Salaries Payable……Cr

••••••••••••••••••••••••••••••••••••••••••••••••••

Question 6

6. How do you show DEPRECIATION adjustment?

Answer 6

Increase the EXPENSE with a DEBIT and increase ACCUMULATED DEPRECIATION with a CREDIT.

Depreciation Expense……Dr
Accumulated Depreciation….Cr

=============================