Illustration 4-2
2. ENTER THE ADJUSTMENTS IN THE ADJUSTMENTS COLUMNS
Account Titles Cash Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable Unearned Revenue Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Exp. Rent Expense Totals Supplies Expense Insurance Expense Accumulated Depreciation Depreciation Expense Accounts Receivable Interest Expense Interest Payable Salaries and Wages Payable Totals Statement of Financial Position Dr. Cr.
WILEY
IFRS EDITION
Prepared by Coby Harmon University of California, Santa Barbara 4-1 Westmont College
PREVIEW OF CHAPTER 4
Financial Accounting
IFRS 3rd Edition Weygandt ● Kimmel ● Kieso
4-2
CHAPTER
4
Completing the Accounting Cycle
LEARNING OBJECTIVES
After studying this chapter, you should be able to: 1. Prepare a worksheet.
2. Explain the process of closing the books.
5. TOTAL COLUMNS, COMPUTE NET INCOME (LOSS)
Account Titles Cash Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable Unearned Revenue Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Exp. Rent Expense Totals Supplies Expense Insurance Expense Accumulated Depreciation Depreciation Expense Accounts Receivable Interest Expense Interest Payable Salaries and Wages Payable Totals Net Income Totals Trial Balance Adjustments Dr. Cr. Dr. Cr. 15,200 (a) 1,500 2,500 (b) 600 50 5,000 5,000 2,500 1,200 (d) 400 10,000 500 (d) 400 10,000 (e) 200 (g) 4,000 1,200 900 28,700 28,700 (a)1,500 (b) 50 (c) 40 (c) 40 (e) 200 (f) 50 (f) 50 (g) 1,200 3,440 3,440 Adjusted Trial Balance Dr. Cr. 15,200 1,000 550 5,000 5,000 2,500 800 10,000 500 10,600 5,200 900 1,500 50 40 40 200 50 50 1,200 30,190 40 Income Statement Dr. Cr.
Adjusting Journal Entries
(Chapter 3)
4-7
Steps in Preparing a Worksheet
Trial Balance Adjustments Dr. Cr. Dr. Cr. 15,200 (a) 1,500 2,500 (b) 600 50 5,000 5,000 2,500 1,200 (d) 400 10,000 500 (d) 400 10,000 (e) 200 (g) 4,000 1,200 900 28,700 28,700 (a)1,500 (b) 50 (c) 40 (c) 40 (e) 200 (f) 50 (f) 50 (g) 1,200 3,440 3,440 Adjusted Trial Balance Dr. Cr. Income Statement Dr. Cr.
Enter adjustment amounts, total adjustments columns, and check for equality.
Add additional accounts as needed.
4-8
LO 1
Steps in Preparing a Worksheet
Trial Balance Adjustments Dr. Cr. Dr. Cr. 15,200 (a) 1,500 2,500 (b) 600 50 5,000 5,000 2,500 1,200 (d) 400 10,000 500 (d) 400 10,000 (e) 200 (g) 4,000 1,200 900 28,700 28,700 (a)1,500 b) 50 (c) 40 (c) 40 (e) 200 (f) 50 (f) 50 (g) 1,200 3,440 3,440 Adjusted Trial Balance Dr. Cr. 15,200 1,000 550 5,000 5,000 2,500 800 10,000 500 10,600 5,200 900 1,500 50 40 40 200 50 50 1,200 30,190 Income Statement Dr. Cr.
6. Identify the sections of a classified statement of financial position.
4-3
Using a Worksheet
Worksheet

Learning Objective 1
Prepare a worksheet.
Multiple-column form used in preparing
Illustration 4-2
1. PREPARE A TRIAL BALANCE ON THE WORKSHEET
Account Titles Cash Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable Unearned Revenue Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Exp. Rent Expense Totals Statement of Financial Position Dr. Cr.
Adjustments Key: (a) Supplies Used. (b) Insurance Expired. (c) Depreciation Expensed. (d) Service Revenue Recognized. (e) Service Revenue Accrued. (f) Interest Accrued. (g) Salaries Accrued.
30,190
4-9
Total the adjusted trial balance columns and check for equality.
LO 1
Steps in Preparing a Worksheet
Trial Balance Adjustments Dr. Cr. Dr. Cr. 15,200 (a) 1,500 2,500 (b) 600 50 5,000 5,000 2,500 1,200 (d) 400 10,000 500 (d) 400 10,000 (e) 200 (g) 4,000 1,200 900 28,700 28,700 (a)1,500 (b) 50 (c) 40 (c) 40 (e) 200 (f) 50 (f) 50 (g) 1,200 3,440 3,440 Adjusted Trial Balance Dr. Cr. 15,200 1,000 550 5,000 5,000 2,500 800 10,000 500 10,600 5,200 900 1,500 50 40 40 200 50 50 1,200 30,190 40 50 Income Statement Dr. Cr.
Illustration 4-2
4. EXTEND AMOUNTS TO FINANCIAL STATEMENT COLUMNS
Account Titles Cash Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable Unearned Revenue Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Exp. Rent Expense Totals Supplies Expense Insurance Expense Accumulated Depreciation Depreciation Expense Accounts Receivable Interest Expense Interest Payable Salaries and Wages Payable Totals Statement of Financial Position Dr. Cr.