The Worksheet

The Accounting Cycle Where we are: 1.Journalize (Using the General Journal) –Done 2.Post (To Ledger Accounts – which are also known as T- Accounts) – Done 3.Trial Balance (Can enter on the Worksheet) - Done 4.Adjustments (On the worksheet) 5.Complete the Worksheet - Now 6.Financial Statements (Income Statement - then the Balance Sheet - Done) 7.Closing Entries (Closing the Temporary Accounts – Drawings, Revenue, Expenses)

The Worksheet  What is the “Worksheet”? The Worksheet is a large sheet of accounting paper used to organize data in the preparation of financial statements On the Worksheet you will see:  Account Numbers (which you all know now!)  The Trial Balance  The Income Statement  The Balance Sheet  And any Adjustments – we’ll do these later

The Worksheet  Step 1 - Write the Heading  Very similar to the Income Statement “For the Month Ended”  Step 2 – Trial Balance Record all accounts in the Trial Balance  Step 3 – Income Statement Transfer Income Statement Items  Revenue & Expenses  Step 4 – Balance Sheet Transfer Balance Sheet Items  Assets, liabilities, OE

Unit #9 – The Worksheet  Step 5 – Net Income/Loss Complete the Income Statement section (Write the difference between Revenue & Expenses – NI (Debit)/NL (Credit)  Step 6 = Transferring Profit Complete the Balance Sheet section (Transfer the NI to the OE section of the Balance Sheet)  Step 7 – LINES! Rule the Worksheet (double lines below the totals to indicate completion)

Recording Net Income/Loss  Once totals are added up on the Income Statement (DR/CR)  the difference will be put below the lower value to balance the two sides If DR > CR = Net Loss If CR > DR = Net Income  Will ensure that all your financial statements balance before actually preparing them

Unit #9 – The Worksheet Accounts Acc. No. Trial BalanceAdjustmentsIncome StatementBalance Sheet DRCRDRCRDRCRDRCR

The Worksheet  Page #6,7,9  Practice Makes Perfect!