Quisao, Marcus Cal-El R. ABM 002 – Written Work 4.

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11 – ABM 1

In Modules 15 to 16, It’s about posting Journal Entries in the General Ledger and
preparing the Trial Balance. I learned about putting Journal Entries in the General Ledger
and creating the Trial Balance. I found out how important the General Ledger is for
keeping track of a company's finances, including things like what it owns and what it
owes. It has a collection of accounts: Assets, Liabilities, Equity, Expenses, and Income or
Revenue. The Trial Balance is a list of all the accounts and how much money is in each,
making sure everything adds up correctly. I also learned how to find mistakes and about
the Journal, which is a list of transactions with explanations. I also learned that the
Journal is a sequential log of transactions, providing explanations and clear references to
their supporting documents, along with corresponding debit and credit entries.

Moving on to Modules 17 to 18, I learned how to make Adjustments. This

included understanding different types like Accruals, Deferrals, Depreciation, and
Doubtful Accounts, and figuring out how much money should be adjusted for each.
Accrual is the recognition of revenue before the actual cash transaction occurs, Deferrals
is the recognition of revenue after the actual cash transaction occurs, Doubtful Accounts
or Bad Debts is a provision for uncollectible accounts, and Depreciation is an allocation
of the cost of an asset to expense. I also learned about Adjusting Journal Entries, which
are important for fixing mistakes at the end of a period. They help make sure all the
income and expenses are recorded correctly.

In Module 19, I learned about using a Worksheet to help with financial

statements. It's like a tool for organizing and analyzing account balances. Account
Worksheet is a document used within the accounting department to analyze and model
account balances. I also learned about the two elements of financial statements: Real
Accounts and Nominal Accounts. Real accounts or also called as Permanent Accounts, is
found in the Balance sheet which is for things like assets, liabilities, and owner’s equity,
while Nominal Accounts or also called as Temporary accounts, is found in the Income
Statement which is for income and expenses.

Moving on to Module 21 to 22, It’s about Preparing Financial Statement of a

Service Business. I learned about the different types of Financial Statements: Statement
of Financial Position displays the business’s financial status on a specific date, Statement
of a Financial Performance shows its operations over a period, Statement of Changes in
Owner’s Equity tracks changes in the owner’s investments or withdrawals, plus/minus
the net income or net loss for the year, and Statement of Cash Flows illustrates cash
inflows from operations and investments. Additionally, I also learned about the different
methods for preparing the Cash Flow Statement: Direct Method, Indirect Method, and
categorizing activities as Operating, Investing, and Financing.

In Module 23 to 25, It’s about Closing Entries of a Service Business and

Completing the Accounting Cycle of Service Business, I learned about creating a Post-
Closing Trial Balance for a service business and the accounting cycle. We covered the
purpose of Closing Entries, how to prepare a Trial Balance, and the steps involved in the
Accounting Cycle for a service business. I learned that Closing Entries are used at the end
of an accounting period to transfer balances from temporary accounts like revenue and
expenses to the owner’s equity account.