CHAPTER 9

TERMS

Financial Statement - end product

Income statement - profit or loss is shown

Footing - adding or subtracting vertically

Reversing Entries - optional

Closing Entries - “zero out”

Closing Entries - also “closing the books”

Post closing trial balance - only real accounts

IF INCOME SUMMARY HAS CREDIT BALANCE THERE IS PROFIT

IF INCOME SUMMARY HAS DEBIT BALANCE THERE IS LOSS

Adjusted Trial Balance is extended to INCOME STATEMENT COLUMNS

Asset Liability Equity is extended to BALANCE SHEET COLUMNS

Balance Sheet is also known as STATEMENT OF FINANCIAL POSITION

- Shows ASSETS LIABILITIES AND EQUITY

Income Statement is also known as STATEMENT OF PROFIT OR LOSS

- Shows EXPENSES INCOME OR LOSS

TRUE OR FALSE

TANDAAN !!!!

- SA INCOME STATEMENT IF TOTAL CREDITS EXCEEDS TOTAL DEBIT

MERON PROFIT (MAY TUBO)
 - LOSS NAMAN OR LUGI KAPAG TOTAL DEBITS EXCEEDS TOTAL CREDITS

- SA BALANCE SHEET KAPAG TOTAL DEBITS EXCEED TOTAL CREDITS MAY

TUBO OR PROFIT

- LOSS NAMAN OR LUGI IF TOTAL CREDITS EXCEEDS TOTAL DEBIT

BASTA KABALIGTARAN LANG NG INCOME STATEMENT ANG BALANCE SHEET

CLOSED ACCOUNT - NO BALANCE

OPEN ACCOUNT - MERON BALANCE

BALANCE SHEET - END OF REPORTING PERIOD

INCOME STATEMENT - COVERING THE REPORTING PERIOD

ENUMERATION

ACCOUNTING CYCLE

STEP 1 - IDENTIFYING

STEP 2 - ANALYZING AND JOURNALIZING

STEP 3 - POSTING

STEP 4 - UNADJUSTED TRIAL BALANCE

STEP 5 - ADJUSTING ENTRIES

STEP 6 - WORKSHEET

STEP 7 - CLOSING ENTRIES