Adjusting entries are necessary in accounting to ensure that financial statements accurately reflect the financial position and performance of a company. These entries are made at the end of an accounting period to record transactions or events that have occurred but have not been properly recorded.

When working with a 10-column worksheet, adjusting entries are typically recorded in the Adjustments columns. Here is a step-by-step guide on how to make adjusting entries on a 10-column worksheet:

1. Identify the need for adjusting entries: Review the accounts and transactions to identify any events that have occurred but have not been recorded in the accounting system. Common examples include accrued revenues or expenses, prepaid expenses, unearned revenues, and depreciation.

2. Determine the account(s) affected: Once you have identified the need for an adjusting entry, determine the specific account(s) that will be affected by the entry. This could be an asset, liability, revenue, or expense account.

3. Decide the type of adjusting entry: There are four types of adjusting entries: accrued revenues, accrued expenses, prepaid expenses, and unearned revenues. Choose the appropriate type based on the specific transaction or event.

4. Calculate the adjustment amount: Determine the amount of the adjustment by considering the time period covered and any relevant rates or estimates. This may involve calculating interest, depreciation, or allocating prepaid expenses.

5. Record the adjusting entry: In the Adjustments columns of the 10-column worksheet, record the adjusting entry using a journal entry format. Include the date, account(s) affected, and the amount of the adjustment. Debit one account and credit another account to reflect the impact of the adjustment on the financial statements.

6. Post the adjusting entry to the appropriate accounts: Transfer the adjusting entry from the Adjustments columns to the appropriate accounts in the Adjusted Trial Balance columns of the worksheet. This ensures that the adjustments are included in the final financial statements.

7. Complete the worksheet: After all adjusting entries have been recorded and posted, complete the worksheet by calculating the adjusted trial balance, income statement, and balance sheet columns. This will provide a clear overview of the financial position and performance of the company after adjusting for the necessary entries.

8. Prepare the financial statements: Use the information from the completed worksheet to prepare the financial statements, including the income statement, balance sheet, and statement of cash flows. These statements will reflect the impact of the adjusting entries on the company's financial position and performance.

It is important to note that adjusting entries should be supported by appropriate documentation and adhere to generally accepted accounting principles (GAAP). Additionally, consult the specific accounting standards and regulations applicable to your jurisdiction or industry for further guidance.

References:

• Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2019). Accounting: Tools for Business Decision Making (7th ed.). Wiley.
• Financial Accounting Standards Board. (2021). Accounting Standards Codification. Retrieved from https://asc.fasb.org/home