Chapter 6 Work Sheet and Adjusting Entries for a Service Business • 125
Study
Guide
6
Part One—Identifying Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Name Perfect
Score Your
Score
Identifying Accounting Terms 13 Pts.
Analyzing Accounting Practices Related to a Work Sheet and Adjusting Entries 20 Pts.
Analyzing Adjustments and Extending Account Balances on a Work Sheet 17 Pts.
Total 50 Pts.
Answers
1.
2.
3.
4.
Column I
A. accrual basis of
accounting
B. adjusting entries
C. adjustments
D. balance sheet
Column II
1. The length of time for which a business summarizes its financial
information and reports its financial performance. (p. 159)
2. A fiscal period consisting of 12 consecutive months. (p. 159)
3. A columnar accounting form used to summarize the general ledger
information needed to prepare financial statements. (p. 159)
4. A proof of equality of debits and credits in a general ledger.
(p. 160)
F
G
M
L
126 • Working Papers
Part Two—Analyzing Accounting Practices Related to a
Work Sheet and Adjusting Entries
Directions: Place a T for True or an F for False in the Answers column to show whether
each of the following statements is true or false.
1. The accounting concept Consistent Reporting is being applied when a delivery business
reports revenue for the number of deliveries made one year and the amount of revenue
received for the deliveries made the next year. (p. 158)
2. A fiscal period must be 12 months in length. (p. 159)
3. Journals, ledgers, and work sheets are considered permanent records. (p. 159)
4. The heading on a work sheet contains the name of the business, the name of the report,
and the date of the report. (p. 159)
5. Only accounts with a balance are listed on a trial balance. (p. 160)
6. The four questions asked when analyzing an adjustment are: Why? Where? When? and
How? (p. 164)
Answers
1.
2.
3.
4.
5.
6.
TE
F
F
F
T
F
F
Chapter 6 Work Sheet and Adjusting Entries for a Service Business • 127
Name Date Class
Part Three—Analyzing Adjustments and Extending
Account Balances on a Work Sheet
Directions: For each account listed below, determine in which work sheet column(s)
an amount typically will be written. Place a check mark in the proper Answers
column to show your answer.
Adjustments Income
Statement Balance
Sheet
Debit Credit Debit Credit Debit Credit
(pp. 164–166) (p. 170) (p. 169)
1. Cash
2. Petty Cash
3. Accounts Receivable—Corner
Bakery
✔
✔
✔
128 • Working Papers
Across
1. The difference between total revenue and total
expenses when total expenses are greater.
4. Journal entries recorded to update general ledger
Down
1. The difference between total revenue and total
expenses when total revenue is greater.
2. A trial balance prepared after adjusting entries
5
2
1
3
6
4
TE
5
2
1
3
6
4
WO RKSHEET
E
DEXPENSE
S
I
APER
P
S
USTIN
C
O
M
I
T
E
NETLOS S
GEN
C
O
M
I
TR IESJDA
J
D
A
T
Chapter 6 Work Sheet and Adjusting Entries for a Service Business • 129
6-1, 6-2, and 6-3 WORK TOGETHER, pp. 162, 168, and 175
6-1 Recording the trial balance on a work sheet
6-2 Planning adjustments on a work sheet
6-3 Completing a work sheet
2 1 6 0 00 2 1 6 0 00 8 3 8 7 00 8 3 8 7 00
6-1, 6-2, and 6-3 ON YOUR OWN, pp. 162, 168, and 175
6-1 Recording the trial balance on a work sheet
6-2 Planning adjustments on a work sheet
6-3 Completing a work sheet
12345678
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Repair World
Work Sheet
For Month Ended December 31, 20–
6-4 WORK TOGETHER, p. 179
Journalizing and posting adjusting entries
GENERAl JOURNAl PAGE
DATE ACCOUNT TITLE DOC.
NO. POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
Adjusting Entries
20 – –
Apr. 30 Supplies Expense 550 1 5 3 00
Supplies 140 1 5 3 00
30 Insurance Expense 530 1 2 5 00
Prepaid Insurance 150 1 2 5 00
8
132 • Working Papers
6-4 WORK TOGETHER (concluded)
GENERAL LEDGER
ACCOUNT Supplies ACCOUNT NO. 140
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
20 – –
Apr. 30 Balance ✔2 2 8 00
ACCOUNT Insurance Expense ACCOUNT NO. 530
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
TE
30 G8 1 5 3 00 7 5 00
20 – –
Apr. 30 G8 1 2 5 00 1 2 5 00
Chapter 6 Work Sheet and Adjusting Entries for a Service Business • 133
6-4 ON YOUR OWN, p. 179
Journalizing and posting adjusting entries
GENERAl JOURNAl PAGE
DATE ACCOUNT TITLE DOC.
NO. POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
Adjusting Entries
20 – –
Dec. 31 Supplies Expense 550 2 3 6 00
Supplies 140 2 3 6 00
31 Insurance Expense 530 1 3 0 00
Prepaid Insurance 150 1 3 0 00
24
134 • Working Papers
6-4 ON YOUR OWN (concluded)
GENERAL LEDGER
ACCOUNT Supplies ACCOUNT NO. 140
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
20 – –
Dec. 31 Balance ✔4 7 6 00
ACCOUNT Insurance Expense ACCOUNT NO. 530
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
TE
31 G24 2 3 6 00 2 4 0 00
20 – –
Dec. 31 G24 1 3 0 00 1 3 0 00
Chapter 6 Work Sheet and Adjusting Entries for a Service Business • 135
Name Date Class
Name Date Class
6-1, 6-2, and 6-3 APPLICATION PROBLEM (LO1, 2, 3, 4, 5, 6), p. 183
6-1 Recording the trial balance on a work sheet
6-2 Planning adjustments on a work sheet
6-3 Completing a work sheet
1 7 0 4 00 1 7 0 4 00 10 5 3 5 00 10 5 3 5 00
Work Sheet
6-4 APPLICATION PROBLEM (LO8), p. 184
Journalizing and posting adjusting entries
1.
GENERAl JOURNAl PAGE
DATE ACCOUNT TITLE DOC.
NO. POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
Adjusting Entries
20 – –
June 30 Supplies Expense 550 3 3 0 00
Supplies 140 3 3 0 00
12
Chapter 6 Work Sheet and Adjusting Entries for a Service Business • 137
6-4 APPLICATION PROBLEM (concluded)
GENERAL LEDGER
ACCOUNT Supplies ACCOUNT NO. 140
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
20 – –
June 30 Balance ✔5 1 8 00
ACCOUNT Insurance Expense ACCOUNT NO. 530
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
30 G12 3 3 0 00 1 8 8 00
20 – –
June 30 G12 1 3 5 00 1 3 5 00
138 • Working Papers
6-M MASTERY PROBLEM (LO1, 2, 3, 4, 5, 6, 8), p. 184
12345678
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
TE
16 8 0 4 00 16 8 0 4 00 1 6 7 0 00 1 6 7 0 00 4 7 0 4 00 6 8 0 0 00 12 1 0 0 00 10 0 0 4 00
Naples Electric Repair
Work Sheet
For Month Ended April 30, 20–
Name Date Class
6-M MASTERY PROBLEM (continued)
7.
GENERAl JOURNAl PAGE
DATE ACCOUNT TITLE DOC.
NO. POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
Adjusting Entries
20 – –
Apr. 30 Supplies Expense 560 1 2 7 0 00
8
6-M MASTERY PROBLEM (concluded)
GENERAL LEDGER
ACCOUNT Supplies ACCOUNT NO. 140
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
20 – –
Apr. 30 Balance ✔1 7 1 0 00
ACCOUNT Insurance Expense ACCOUNT NO. 530
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
30 G8 1 2 7 0 00 4 4 0 00
20 – –
Apr. 30 G8 4 0 0 00 4 0 0 00
Chapter 6 Work Sheet and Adjusting Entries for a Service Business • 141
Name Date Class
6-C CHALLENGE PROBLEM (LO1, 2, 3, 4, 5, 6), p. 185
12345678
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
7 6 0 0 00 7 6 0 0 00 9 3 8 8 00 9 3 8 8 00
ProSource Company
Work Sheet
For Month Ended November 30, 20–
