Question 1: Completing the Accounting Cycle, Worksheet and Financial

Statements

The accounting cycle:

Journal Entries (1) Ledge Accounts (2) Unadjusted Trial Balance (3)

Adjusting Entries (4) Adjusted Trial Balance (5) Closing Entries (6)

Post-closing Trial Balance (7) Financial Statement (8) Reversing

Entries (9).

GST:
 “PLUS GST”: GST = 10% of amount
 “INCLUSES GST”: GST = Divide amount by 11 as
the transaction has included the GST in its total

(1) Journal Entries:

 For Revenue and Expense,
(2) Ledge Accounts you don’t need to do
Balance b/d

If you have Balance

b/d, write the
number in Balance
column

DR

DR
DR
DR
DR
DR
DR
DR

Must write
(3) Unadjusted Trial Balance

(4) Adjusting Entries

Deferrals: Cash incurred before expense/income

I: Prepaid Expense
30 June Dr. ___ Expense
Cr. Prepaid ___

EX: Prepaid insurance expired, $1,200

Dr. Insurance Expense 1,200
Cr. Prepaid Insurance 1,200

II: Unearned Revenue

30 June Dr. Unearned ___ Revenue
Cr. ___ Revenue

EX: Unearned cleaning services revenue now earned, $ 3,200

Dr. Unearned Service Revenue 3,200
Cr. Service Revenue 3,200
Accruals: Income/Expense incurred before cash

I: Accrued Expense
30 June Dr. ___ Expense
Cr. ___ Payable (Liabilities)

EX: Employee salaries owed but not recorded, $6,400

Dr. Salaries Expense 6,400
Cr. Salaries Payable 6,400

II: Accrued Revenue

30 June Dr. ___ Receivable (Asset)
Cr. ___ Revenue

EX: Internet revenue accrued but not recorded, $1,600

Dr. Internet Receivable 1,600
Cr Internet Revenue 1,600

Depreciation:

Dr. Depreciation Expense

Cr. Accumulated Depreciation

EX: Depreciation not recorded, $12,000

Dr. Depreciation Expense 12,000
Cr Accumulated Depreciation 12,000

Bad Debt:

Dr. Bad Debt Expense

Cr Allowance for Doubtful Debt

EX: On the 30th June Pearson estimated that $250 of its accounts receivable
would not be collectable
Dr. Bad Debt Expense 250
Cr Allowance for Doubtful Debt 250
(5) Adjusted Trial Balance

(6) Closing Entries

(7) Post-closing Trial Balance
WORKSHEET AND FINANCIAL STATEMENT
(9) Reversing Entries

Only reversing
Accruals