This presentation is intended for the students who holds the copy of the file I presented. It is a run through of the process and a quick comparison of the two methods. A step by step procedure is demonstrated in another video kzbin.info/www/bejne/rKXRY6yAm6ung7ssi=shvyLoWa6Crnta1m

The adjusting entry method and closing entry method are two different ways in the preparation adjusting entries and worksheet for merchandising activities. It depends whichever method you will apply, they will still yield the same adjusted balances. Kindly go over the video for the complete procedures.

@@angelicabal ah okay po ask ko lang po paano po ung closing entry po sa merchandise inventory & income summary if ung adjusting entry method po na worksheet ang iaapply?

@@jeongwoo5458 it is hard to describe it here without the actual entries, but only the income summary acct is included in the closing entries together with the other cost of sales items while the inventory end will not be closed.

@@angelicabal ah okay po gets thank you po so kasama po sya sa pagclose ng credit balances?

@@jeongwoo5458 yes.

You're welcome po. 🩷

Glad to help! ☺️

Glad to help! 💗

Yes I do have but immediately from adjusted trial balance to Closing and Post closing entries. View this link: kzbin.info/www/bejne/i3bPfJWieN2XrtU

@@angelicabal thank you

hello po bakit po sa given example samin ang merchandising inventory, end sinali sa income statement? Bali po net loss siya. Total credit + inventory end = n - total debit = net loss amount. then sa credit plus yong total credit + inventory end + net loss = n. Possible ba na mali teacher namin? kasi sabi sa video ang end dapat balance sheet lang. BTW, nereview ko hindi balance so mali talaga diba?

Adjusting entry method:Separate account titles for the inventory end (dr.) And income summary (cr.) are established and placed under the adjustments column and extended to the income statement columns. The amount of inventory end will be placed in the credit side of the income statement column in the account income summary and the same amount under the debit side of balance sheet column as inventory end. Closing entry method: No separate account title for inventory is established in the adjustments column, entries to adjust the inventory end. are made directly under the income statement column. The inventory end amount is placed under the credit side of income statement column and extended to the debit side of the balance sheet column.

Glad to help!

Adjusted TB will be used

naconfuse lng ako konti ma’am kasi may napanood po ako, sa ending inventory nya di sya nag add ng acct title ng ending inventory but yung adjustment nya is nilagay nya sa beg. inv. nya then pagdating sa adjusted trial bal. yung nakareflect nlng ay yung adjustment zinero out nya yung beg. inventory nya.. lol buti nlng nakita ko yung video nyo po, anyways thank you again 💖

@@leahato6068 the method used in the video you watched i think is closing entry method.

@@angelicabal Ahh okay po, kaya pala, if closing entry method po ba iba din effect dun sa magiging Inc Stat. and Bal. Sh.? or same lang?

@@leahato6068 same lang mapa closing entry or adjusting entry method

Thank you sa positive feedback! 😊 Sorry at sa vernacular namin yung discussion.

Yes po ipaghihiwalay sila since yung purchases journal is for purchases on account only.

Ending inventory is given in the problem. Please see the description box for the complete problem details.

Halimbawa po sa investment po is cash, merchandise, store equipment. Sa General journal po ba kapag ganyan?

Or pwede pong hiwalay po cash receipt and general journal

@@sophiakisses3613 sa cash investment, kung may natanggap na cash, doon irerecord sa cash receipts then under sa sundry accounts or other accounts column irerecord yung amount for the capital. If merchandise or equipment ang investment, since walang cash involved, hindi rin sya purchase or sale transaction, sa general journal sya irerecord.

@@angelicabal Thankk you po. Pati po ba ano kapag halimbawa po ganto yung transaction Notes payable Interest expense Cash Yung notes payable and interest expense po is irerecord sa cash payment journal sundry decits po? Then sames po sa Cash Notes receivable Interest income Sa cash receipt journal sundry credits po yung Notes receivable and interest income?

@@sophiakisses3613 yes, tama.

13:40 po na timestamp sa video po

Yes a proof of cash is used to determine the correct cash balance to be presented in the SFP. The month end corrected balance is the amount will place in the current month SFP. A proof of cash is an expanded reconciliation in that it includes proof of disbursement and receipts for a particular month but the actual preparation will be made in the following month na. For example if we want to get the correct cash balance for November, we will normally be able to prepare a proof of cash during December na (as soon as we are able to receive the Nov bank statement). When we prepare the proof of cash for the November cash balance, we will post the necessary reconciling items under November receipts and disbursements even if the actual preparation of the POC is done in Dec. Then if we want to determine the correct cash balance for Dec., we still have to wait for the Dec.bank statement to arrive (perhaps in the 1st week of January) before we can determine the corrected cash balance for December. Since sa buwan ng December ay wala pa tayong data regarding the receipts, disbursements, credit memos and debit memos that will be found in the bank statement, sa January pa tayo mag preprepare ng proof of cash for the cash balance for December.

9:16 po, the amount of cash to be presented in the sofposition is 205k-184k = 21k po? Correct po? for month of february?

For example in ur example po 9:16, uhm how did u get po yung mga current month (february) values like the 20k, 10k (of the books) if sa march pa dadating ang bank statement for february? Thanks po & sorry for asking lots of qs

@@fitnessadvocate8377 Since the POC refers to the February transactions, then this Proof of cash is prepared in March (as soon as the bank statement for the Feb. transactions has already arrived.

@@fitnessadvocate8377 The amount of cash to be presented in the SFP as of Jan 31 - P59,000 and as of Feb 28 - P80,000 (both are the adjusted balances found in the 1st and 4th columns, respectively).