Reading: Lesson 4 - Journalizing adjusting entries
After completing MicroTrain's financial statements from the work sheet, you should enter the
adjusting entries in the general journal and post them to the appropriate ledger accounts. You would
prepare these adjusting entries as you learned in Chapter 3, except that the work sheet is now your
source for making the entries. The preparation of a work sheet does not eliminate the need to prepare
and post adjusting entries because the work sheet is only an informal accounting tool and is not part of
the formal accounting records.
The numerical notations in the Adjustments columns and the adjustments explanations at the
bottom of the work sheet identify each adjusting entry. The Adjustments columns show each entry with
its appropriate debit and credit. MicroTrain's adjusting entries as they would appear in the general
journal after posting are: