Tutor: Chu Ngoc Long Facebook: Long Chu

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Chapter 4: Completing the Accounting Cycle

1. Steps in prepareing a Worksheet

COMPUTE NET INCOME (LOSS)

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2. Form of Income Statement

3. Form of Owner’s Equity Statement

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4. Form of Balance Sheet

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5. Posting Closing Entries

2500

NOTE: Owner’s Drawings is closed directly to Owner’s Capital and not to Income
Summary. Owner’s Drawings is not an expense.

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6. Closing entries journalized

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Exercises
1. Victoria Lee company had the following adjusted trial balance.

Prepare closing entries at June 30,2017

2. The adjusted trial balance column of the worksheet for Porter company,
owned by Mr. Porter are as follow:

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a. Preapare the worksheet

b. Prepare an Income Statement, owner’s equity statement, and a classified balance
sheet (Note: $5,000 of the notes payable become due in 2018) D. Thao did not
make any additional investments in the business during the year.
c. Prepare the closing entries
d. Prepare a post-closing trial balance.