Learning Objective 9 * To post adjusting journal entries. If the farm accountant chooses to record journal entries to make adjustments as illustrated in this chapter, the next step in the year-end procedures is to post them to the ledger accounts.
(In the author's experience, virtually every audit client had posted passed adjusting journal entries in the first quarter of the succeeding year because they were deemed immaterial to either period.) Instead, the entries at WM were suspended.
In Chapter 4, you learned how to tell the difference between the cash-basis system, the accrual-basis system, and the accrual-adjusted approach; how to prepare and post adjusting journal entries for inventory, prepaid items, depreciation, accrued expenses, accrued revenues, changes in value for raised breeding livestock, income taxes, and deferred taxes in the accrual-adjusted approach; and how to prepare an adjusted trial balance.