Learning Objectives

1. Prepare a classified income statement from the worksheet.
2. Prepare a statement of owner’s equity from the worksheet.
3. Prepare a classified balance sheet from the worksheet.
4. Journalize and post the adjusting entries.
5. Journalize and post the closing entries.
6. Prepare a postclosing trial balance.
7. Journalize and post reversing entries.
8. Define the accounting terms new to this chapter.