Answer:
here is the answer
Step-by-step explanation:
Step-by-step explanation:
To journalize the adjusting entries from Chapter 4 of the book "On The Job," follow these steps:
Determine the accounts affected: Identify the accounts that need to be adjusted based on the specific scenario or transaction described in Chapter 4.
Determine the account type: Classify each account as an asset, liability, equity, revenue, or expense account. This step is essential for determining whether to debit or credit each account.
Identify the adjustment type: Determine whether the adjusting entry involves accruing revenues or expenses, deferring revenues or expenses, or adjusting for depreciation or amortization.
Analyze the impact on the financial statements: Understand how the adjustment will affect the income statement, balance sheet, and statement of cash flows. Consider which accounts will be affected and how the adjustment will impact their balances.
Prepare the journal entry: Use the following format to journalize the adjusting entry:
Date: [Date of the adjustment]
Account Title: [Debit account title]
Account Title: [Credit account title]
Explanation: [Provide a brief explanation or description of the adjustment]
Debit the account that is increasing and credit the account that is decreasing. Ensure that the debits and credits are equal, maintaining the accounting equation (Assets = Liabilities + Equity).
Post the adjusting entry: Transfer the journal entry to the appropriate general ledger accounts. Update the account balances by recording the debits and credits from the journal entry.
Review and close the accounts: After posting the adjusting entries, review the general ledger accounts to ensure their accuracy. Then, close the temporary accounts (revenue and expense accounts) to the income summary account or retained earnings account, depending on the company's accounting method.