Accounting 10, 20, 30
Course Configurations
Generate adjusting and closing entries in relation to the appropriate accounting period.
Indicators for this outcome
| (a) | Describe how the matching principle justifies the need for adjusting and closing entries. |
| (b) | Record adjusting entries in the general or combination journal for all prepaid expenses (e.g., supplies, insurance, advertising). |
| (c) | Transfer the adjusting entries from the general or combination journal to the ledger by posting them to appropriate ledger account. |
| (d) | Distinguish between permanent and temporary accounts. |
| (e) | Identify the new account income summary as a temporary account. |
| (f) | Define and discuss the purpose of closing entries (e.g., update accounts, transferring net income/loss to owners’ equity account). |
| (g) | Calculate and prepare closing entries by journalizing each entry and posting them to the ledger to bring temporary accounts to zero. |
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