Specifications

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Lesson 5 Computer Tutorial 3

EXERCISE 5.5

Making and posting adjusting entries

1. Add the following account to your chart of accounts (see Topic 2.6 for an

explanation of this process):

Account Description Structure Account Normal Account

code type balance group

2090 Accrued ACC Balance Credit Current

liabilities Sheet Liabilities

Click Add and close the G/L Accounts window to return to the company desktop.

2. Click G/L Transactions, then double-click the Batch List icon.

3. Create a new batch (see Lesson 3 if you need help).

These adjusting entries are just like the journal entries you made in Topic 4.5.

Year-end adjustments are made in a similar way. Ensure that the Batch description

field for year-end adjustments clearly states that the adjustments are for year-end

closing. When making adjusting entries, you use the Year/Period field to control

which period within the current fiscal year the entries should affect. Accpac has a

specific period, ADJ, that is used just for year-end adjustments. A separate period

prevents adjustments from affecting Period 12 results.

4. Make the following adjustments to the ADJ period. Click Add after you have entered

each journal entry.

Source

Line code Description Account Dr. Cr.

Reference: Estimated bad debts

1 JE Bad debts expense 6100 2,000

2 JE Allow. for doubtful accounts 1190 2,000

Reference: Amortization expense

1 JE Amortization 6160 18,600

2 JE Accum. amort. 1620 18,600

Reference: Interest on bank loan

1 JE Interest – long-term debt 6300 3,570

2 JE Accrued liabilities 2090 3,570

5. When you have entered and saved the last journal entry, close the G/L Journal Entry

window. In the G/L Batch List window, select the adjustment batch and print it.

6. Check the printed batch and compare your entries with Exhibit 5-5 (printed in

landscape format). If you find any errors, return to the batch and make the necessary

corrections. Reprint the batch if changes are made.

7. When you are satisfied, back up your data set and post the batch. If you need a

refresher on posting batches, see Topic 4.3.

8. Close the G/L Batch List window to return to the company desktop.