The document provides instructions for recording adjustments on a work sheet for a merchandising business. It describes adjusting supplies and prepaid insurance accounts, including debiting and crediting the appropriate amounts in the adjustments columns and labeling the parts of each adjustment. The overall purpose is to analyze and properly record various account adjustments on an 8-column work sheet.

1. LESSON 14-2
Beginning an 8-Column
Work Sheet for a
Merchandising Business
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 2
RECORDING A TRIAL BALANCE ON A
WORK SHEET
1
1. Account title
2. Account balance
3. Total, prove, and
rule the debit and
credit columns
page 410
2
3
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-2

3. 3
ANALYZING AND RECORDING SUPPLIES
page 411
ADJUSTMENTS
Adj. (a)
Dec. 31 Bal.
(Adj Bal.
Adj. (b)
Dec. 31 Bal.
(Adj Bal.
Supplies Expense—Office
2,730.00
Supplies—Office
3,480.00 Adj. (a)
750.00)
2,730.00
Supplies Expense—Store
2,910.00
Supplies—Store
3,944.00 Adj. (b)
1,034.00)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2,910.00
LESSON 14-2

4. 4
RECORDING SUPPLIES ADJUSTMENTS
ON A WORK SHEET
page 412
3
2
3
1
1. Write the debit amounts in the Adjustments Debit column.
2. Write the credit amounts in the Adjustments Credit column.
3. Label the two parts of the Supplies—Office adjustment with small letter
a and small letter b in parentheses.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-2

5. 5
ANALYZING AND RECORDING A
PREPAID INSURANCE ADJUSTMENT
page 413
3
1
3
2
1. Enter the amount of insurance used
in the Adjustments Credit column.
2. Enter the same amount in the
Adjustments Debit column.
3. Label the two parts of the
adjustment with a small letter c in
parentheses.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-2

6. 5
ANALYZING AND RECORDING A
PREPAID INSURANCE ADJUSTMENT
page 413
3
1
3
2
1. Enter the amount of insurance used
in the Adjustments Credit column.
2. Enter the same amount in the
Adjustments Debit column.
3. Label the two parts of the
adjustment with a small letter c in
parentheses.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-2