00:01
Why is it necessary to prepare formal financial statements if all of the data are in the statement columns of the worksheet? identify the account or accounts debited and credited in each of the four closing entries, assuming the company has net income for the year.
00:16
Distinguished between a reversing entry and an adjusting entry.
00:19
Are reversing entries required? indicate in the sequence in which they are made, the three required steps in the accounting cycle that involve journalizing.
00:28
Identify in the sequence in which they are prepared, the three three.
00:31
Through trial balances that are often used to report financial information about a company.
00:38
Even though all of the data is in the statement columns of the worksheet, it is required that the same be presented in a formal financial statement for several reasons.
01:53
And they include the law.
02:00
The law wants the accounts to be in predefined format of statements.
02:05
It allows for convenient analysis and interpretation of results.
02:30
Because the law is applicable to each company or competitor, comparison becomes easy.
03:00
The four closing entries where the accounts are debited and credited, expense accounts, where the income summary is debited and all expense accounts are credited, revenue accounts where all the revenue accounts are debited and the income summary is credited, withdrawal accounts where the capital account is debited and withdrawal account is credited, and the net income account where the income summary accounts are debited and the capital or retained earning account is credited...