Chapter 4, Problem 6PSA

To determine

Concept Introduction:

6-Column Worksheet:

6-column worksheet consists of detailed financial information during an accounting period regarding unadjusted trial balance, adjustments, and adjusted trial balance.

Requirement 1:

To Prepare:

Complete the six-column table of trial balance.

To determine

Concept Introduction:

Adjusting Entries:The journal entries which are prepare with an intention show the all the accrued expenses and revenue in the financial statements is called adjusting entries.

Requirement 2:

Adjusting entries for the adjustment entered in the six-column table.

To determine

Concept Introduction:

Reversing Entry:The journal entry which neutralizes the effects of the adjusting entry is called reversing entries. Reversing entry are prepare at the beginning of an accounting period. The main purpose behind journalizing the reversing entry is to avoid any complication at the time of collection or payment of revenues or expenses.

Requirement 3:

Journal entries to reverse the effects of the adjusting entries

To determine

Concept Introduction:

Reversing Entry:The journal entry which neutralizes the effects of the adjusting entry is called reversing entries. Reversing entry are prepare at the beginning of an accounting period. The main purpose behind journalizing the reversing entry is to avoid any complication at the time of collection or payment of revenues or expenses.

Requirement 4:

Recording of collections and payments in January