Concept explainers
(a)
Worksheet: A worksheet is the summary of accounting information that is prepared to ensure that the accounts are recorded correctly for financial statements preparation. It reflects the temporary and permanent account both.
To prepare: The worksheet for Company V.
(b)
Classified
To Prepare: The Classified balance sheet for Company V.
(c)
Adjusting Journal Entries: Companies need to record the journal entries at the end of accounting period to apply the matching and revenue recognition principles. These journal entries are
To record: The adjusting entries for Company V.
(d)
Closing Entries: Journal entries, which transfer the balances from temporary accounts to income summary or retained earnings account, are called closing entries. The revenues accounts are debited and the expenses are credited in these entries because their balances are transferred.
To record: The closing entries for Company V as on Dec. 31, 2017.
(e)
To prepare: Post-closing
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