After studying Chapter 8, you will be able to:
- Define accounting terms related to adjusting and closing entries for a service business organized as a proprietorship.
- Identify accounting concepts and practices related to adjusting and closing entries for a service business organized as a proprietorship.
- Record adjusting entries for a service business organized as a proprietorship.
- Record closing entries for a service business organized as a proprietorship.
- Prepare a post-closing trial balance for a service business organized as a proprietorship.
Mastery Problem 8-4
- Make a copy of this spreadsheet.
- Place this file in your Chapter 8 folder.
- Rename the file to Mastery Problem 8-4-(Your Initials)
- Complete the spreadsheet according to the directions on page 222 or below.
Challenge Problem 8-5
- Make a copy of this spreadsheet.
- Place this file in your Chapter 8 folder.
- Rename the file to Challenge Problem 8-5-(Your Initials)
- Complete the spreadsheet according to the directions on page 223 or below.
Cases for Critical Thinking
- Create a new Google Document titled CCT-(Your Initials) and place it in your Chapter 8 folder.
- Read each of the two cases on page 224 of your textbook and answer the questions in your document that are posed at the end of each case.
Auditing for Errors
- Create a new Google Document titled Error Auditing-(Your Initials) and place it in your Chapter 8 folder.
- Analyze the closing entries for Greenlund Enterprises show on page 225 of your textbook.
- Assuming all account balances are correct, review the entries and then list any errors in your document that you find.
Analyzing Best Buy’s Financial Statements
- Refer to Best Buy’s consolidated statements of earnings on Appendix B page B-6. To calculate what percentage an item increased or decreased from one year to another, calculate the difference between the two amounts and divide this difference by the amount for the earlier year. For example, the percentage of increase in revenue from 2005 to 2006 would be calculated as follows: ($30,848,000,000 – $27,433,000,000) / $27,433,000,000 = 12.45%. Create a new Google Document titled Best Buys Earnings-(Your Initials) and then answer the following questions using Appendix B:
- What is Best Buy’s revenue (sales) for each of the three years? Is this a favorable or unfavorable trend?
- Calculate the percentage of increase in revenue from 2006-2007.
- How does the increase from 2006 to 2007 compare to the increase from 2005 to 2006?
Study Guide 8
- Complete this Chapter 8 Study Guide to assess your learning from Chapter 8. You have as many attempts as needed to get as good of a score as you can.