G P Sessions, JD Work Sheets Accounting 1 Chapter 6

Preparing a Work Sheet Heading: Who (Name of Business) Who (Name of Business) What (Work Sheet) What (Work Sheet) When (For Period Ended) When (For Period Ended)

Preparing a Work Sheet Trial Balance Columns Trial Balance Columns Source: General Ledger Source: General Ledger All Accounts, balance or not All Accounts, balance or not Debit and Credits must equal Debit and Credits must equal If equal, double rule Columns If equal, double rule Columns If not equal, find and fix errors If not equal, find and fix errors

Preparing a Work Sheet Adjustments Columns Adjustments Columns Source: Memoranda Source: Memoranda Adjust those accounts that have declined in value without accounting Adjust those accounts that have declined in value without accounting Couple debits and credits with parenthetical notation Couple debits and credits with parenthetical notation

Preparing a Work Sheet Adjustments Columns Cont. Adjustments Columns Cont. Credits reduce Assets Credits reduce Assets Corresponding debits are made to Expense Accounts Corresponding debits are made to Expense Accounts Debit and credit columns must equal Debit and credit columns must equal If equal, double rule Columns If equal, double rule Columns

Preparing a Work Sheet Income Statement Columns Income Statement Columns Extend Adjusted Balances of Income statement Accounts to Income Statement Columns Extend Adjusted Balances of Income statement Accounts to Income Statement Columns Totals will probably not equal Totals will probably not equal Compute Net Income (Loss) Compute Net Income (Loss)

Preparing a Work Sheet Income Statement Columns Cont. Income Statement Columns Cont. Add Net Income as a Debit to Income Statement Column Debit Total and result will equal Credit Total Add Net Income as a Debit to Income Statement Column Debit Total and result will equal Credit Total Add Net Loss as a Credit to Income Statement Credit Total and result will equal Debit Total Add Net Loss as a Credit to Income Statement Credit Total and result will equal Debit Total

Preparing a Work Sheet Balance Sheet Columns Balance Sheet Columns Extend Adjusted Balances of Balance Sheet Accounts to Balance Sheet Columns Extend Adjusted Balances of Balance Sheet Accounts to Balance Sheet Columns Totals will probably not equal Totals will probably not equal

Preparing a Work Sheet Balance Sheet Columns Cont. Balance Sheet Columns Cont. Extend Net Income (Loss) to the opposite column as it appears in the Income Statement columns. Extend Net Income (Loss) to the opposite column as it appears in the Income Statement columns. Balance Sheet Columns should equal Balance Sheet Columns should equal

Preparing a Work Sheet Balance Sheet Columns Cont. Balance Sheet Columns Cont. Double Rule the Income Statement and Balance Sheet Columns. Double Rule the Income Statement and Balance Sheet Columns.

Success in Accounting Prepared and presented by G P Sessions, JD G P Sessions, JD Lakes High School Business Education Department