Recording Adjusting and Closing Entries for a Merchandising Business set up as a Partnership
Introduction of adjusting and closing entries for a partnership set up as a merchandising business. Introduction of the adjustments made to Merchandise Inventory, Supplies and Prepaid Insurance. Introduction of how to journalize and post the adjusting entries to their appropriate general ledger accounts for a partnership. Introduction of permanent accounts, temporary accounts and the need for closing out temporary accounts at the end of a fiscal period. Introduction of the closing accounts and their related accounts for a partnership (Revenue/Sales -Income Summary, Purchases and Expenses - Income Summary, Net Income/Net Loss - Capital Account, Drawing Account - Capital Account). Introduction of what a post closing trial balance is for a partnership and why it is prepared at the end of a fiscal period. Introduction of how to prepare a post closing trial balance, the different sections of a post closing trial balance and the accounts to be included, as well as how to use the post closing trial balance to help the business know its financial position.