Adjusting Entries, 10-Column Worksheet

MODULE 5
ADJUSTING ENTRIES, 10-COLUMN WORKSHEET

I. INTRODUCTION
A. OVERVIEW
At the end of each accounting period, the business has to prepare its financial
reports for the use of the stakeholders. Before the preparation of these reports,
however, the business has to update some of its accounts in order to come up with
fairly correct information. That is the reason we have to prepare adjusting journal
entries. In this module, you are going to learn the meaning of adjusting entries, the
accounts that need to be adjusted and the reason for their adjustment. After which, the
adjusted trial balance is also discussed. The worksheet and its purpose are also taken
up in this module. Illustrations come after each topic. Exercises/problems are given at
the end of the lesson for further understanding of the topic.
B. LEARNING OUTCOMES
At the end of the lesson, you will be able to:
1. Understand adjusting entries and the accounts to be adjusted

2. Prepare adjusting entries
3. Understand the adjusted trial balance
4. Prepare an adjusted trial balance
5. Understand the purpose of a worksheet
6. Prepare a 10-column worksheet
C. REQUIREMENTS
After reading and studying the lessons, please answer the

questions/exercises at the end of the lesson.
D. INSTRUCTION
Spend the first two days of the week (MW and TTh) reading, studying, and
understanding the lessons in this module. Then answer the questions/exercises
1|Page
given and send them to my private messenger. Then prepare for a discussion on
the last day of the week (F and S).
E. PRE-ASSESSMENT
Problem-solving/Exercises
II. CONTENTS
A. LESSON
1. ADJUSTING ENTRIES AND ACCOUNTS TO BE ADJUSTED
2|Page
3|Page
4|Page
5|Page
6|Page
7|Page
8|Page
9|Page
10 | P a g e
11 | P a g e
12 | P a g e
13 | P a g e
ADJUSTED TRIAL BALANCE
The adjusted trial balance contains the sum of the trial balance and adjustments. It is prepared
after adjustments of the accounts to check the correctness of the debit and credit in the adjusting
entries.
14 | P a g e
WORKSHEET
A worksheet is a columnar paper which is prepared to facilitate the

preparation of adjusting entries, and the financial statements. There are several
kinds of worksheet depending on the number of columns. The number of columns
depends on the need and the use of the business.
In our lesson of a service concern, we are going to use a 10-column

worksheet.
PROCEDURE IN PREPARING A 10-COLUMN WORKSHEET
1. Write the heading such as:

Name of the Business
Worksheet
For the Period Ended ______, 20__
2. Write the heading of each column such as:

Accounts Trial Balance Adjustments Adjusted T.B. Income Statement Statement of Financial
Debit | Credit Debit | Credit Debit | Credit Debit | Credit Position
Debit | Credit
3. Write on the first two-columns the trial balance

4. Under the adjustment column, write the amount in the adjusting entries
opposite the accounts present in the trial balance. If the accounts are
not in the trial balance, write the account below the total of the trial
balance. Then get the totals of the adjustment column
5. The adjusted trial balance is the sum of the trial balance and adjustment
columns. So add horizontally the amounts in the trial balance and the
amount in the adjustment column. Then get the totals of the adjusted
trial balance.
6. Extend the accounts from the adjusted trial balance to the Income
Statement columns and the Statement of Financial Position columns.
When you extend the accounts, always start with the first account in the
adjusted trial balance.
15 | P a g e
The statement of Financial Position contains the assets, liabilities
and capital; while the Income Statement contains the income and
expenses.
7. Then add the Income Statement and Statement of Financial Position
columns.
8. Get the difference of the debit and credit sides of the income statement
column; if the credit side is more than the debit side (income >expense)
there is profit. Add the profit on the debit side of the income statement.
Then, extend the profit on the credit side of the statement of financial
position (because profit is an increase in capital). Then add all the
columns: debit and credit sides of IS should be equal and debit and
credit sides of SFP should be equal. If, however, the debit side of the
income statement column is more than the credit side (expenses >
income) the result of the business operation is a loss. Place the loss on
the credit side of the income statement of financial position (because
loss is a deduction from capital), then add all the columns.
Note: Income > Expenses = Profit
Expenses > Income = Loss
Income = Expense is a break-even
16 | P a g e
17 | P a g e
B. ADDITIONAL READINGS
1. Fundamentals of Accounting by Amelia M. Arganda

2. Conceptual Framework and Accounting Standards by Zeus Millan
3. Financial Accounting and Reporting For Services and Merchandisers by
Zenaida Manuel
4. Fundamentals of Accountancy, Business and Management by Rodiel C. Ferrer
C. EXERCISES
Direction: Answer the following exercises, then send your answers to my

private messenger.
1. Give the year-end adjusting entry required by each of the following:
18 | P a g e
2. Give the year-end adjusting entry required by each of the ff:
d
3. From the following data prepare a 10-column worksheet
19 | P a g e
4. From the following data prepare a 10-column worksheet
20 | P a g e
21 | P a g e

Adjusting Entries, 10-Column Worksheet

Uploaded by

Copyright:

Available Formats

Adjusting Entries, 10-Column Worksheet

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Adjusting Entries, 10-Column Worksheet

Uploaded by

Copyright:

Available Formats

MODULE 5

ADJUSTING ENTRIES, 10-COLUMN WORKSHEET

At the end of the lesson, you will be able to:

1. Understand adjusting entries and the accounts to be adjusted

After reading and studying the lessons, please answer the

A worksheet is a columnar paper which is prepared to facilitate the

In our lesson of a service concern, we are going to use a 10-column

PROCEDURE IN PREPARING A 10-COLUMN WORKSHEET

1. Write the heading such as:

2. Write the heading of each column such as:

3. Write on the first two-columns the trial balance

1. Fundamentals of Accounting by Amelia M. Arganda

Direction: Answer the following exercises, then send your answers to my

1. Give the year-end adjusting entry required by each of the following:

You might also like