Question: The work sheet was introduced in this chapter. The work sheet is used only in a manual accounting system. Computerized accounting systems do not produce a work sheet. Instead, a trial balance is printed to make sure that the debit account balances equal the credit account balances. The trial balance is used to plan the necessary adjustments. The adjusting entries are then entered into the system using general journal entries. Once the adjusting entries have been made, another trial balance should be prepared. Although computer systems are very accurate, the new balances should be examined to determine if the correct adjusting entries were made. This can be done by checking to make sure the new balances in supplies and prepaid insurance reflect the amount of supplies on hand and the unexpired insurance.

QUICKBOOKS MASTERY PROBLEM

1. Open the Bonita Bubbles file.

2. Journalize the adjusting entries for April 30 using the general journal in your QuickBooks software to record the transactions.

3. Print a trial balance. NOTE: Although the instructions direct you to generate a balance sheet and profit and loss statement, it is not necessary to do this right now. You will do this in a later problem. However, you should generate a trial balance after the adjusting entries are recorded in order to check the accuracy of the adjusting process.