TEACHER MIDTERM EVALUATION

DAY 2

LO1–PREPARE END OF PERIOD ADJUSTMENTS

  1. Read and do (check yourself–answers are on pages 175-176):
    1. Page 155–True/False #1-5 & Multiple Choice #1-4
    2. Page 156–Checkpoint Exercise #1 only
  2. The analysis for prepaid insurance is very similar to that used for supplies. First, compute the amount of insurance that expires per period—the text uses a month. This amount is an expense and reduces the amount that should be reported as an asset.
    1. Prepaid Insurance (See Figure 5-5 and Figure 5-6)
    2. Adjust the amount of insurance expired–Debit Insurance Expense and credit Prepaid Insurance.
    3. Please SHOW ME EACH ONE BEFORE YOU PROCEED TO THE NEXT ONE:
      1. In-Class Exercise: Complete Exercises E5-2A, E5-2B (5 minutes each)
      2. In-Class Exercise: Complete Exercises E5-7A, E5-7B (5 minutes each)
  3. Wages Expense (See Figure 5-7 and Figure 5-8)
    1. Adjust for the amount of wages owed but not yet paid.
    2. Debit Wages Expense and credit Wages Payable.
    3. Please SHOW ME EACH ONE BEFORE YOU PROCEED TO THE NEXT ONE:
      1. In-Class Exercise: Complete Exercises E5-3A, E5-3B (5 minutes each)