CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Creating a Worksheet

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Consistent Reporting – The accounting concept applied when the same accounting procedures are followed in the same way in each accounting period. Ex: reporting sales one year and deliveries the next year

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Accounting Period Cycle – Concept applied when changes in financial information are reported for a specific period of time in the form of financial statements. Choose a length of time that meets the needs of the business

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 What are financial statements? Why would you use them? How does a worksheet help prepare financial statements?

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON To summarize general ledger account balances to prove that debits equal credits 2.To plan needed changes to general ledger accounts to bring account balances up to date

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON To separate general ledger account balances according to the financial statements to be prepared 4.To calculate the amount of net income or net loss for a fiscal period

CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 6-1 PREPARING THE HEADING OF A WORK SHEET page 153 Name of Company 1 Name of Report 2 Date of Report 3

CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON Write the general ledger account titles. 2.Write the general ledger debit account balances. Write the general ledger credit account balances. 4.Add both the Trial Balance Debit and Credit columns. 3.Rule a single line across the two Trial Balance columns. 5.Write each column’s total below the single line. 6.Rule double lines across both Trial Balance columns. PREPARING A TRIAL BALANCE ON A WORK SHEET page

CENTURY 21 ACCOUNTING © Thomson/South-Western 9 LESSON 6-1 TERMS REVIEW fiscal period work sheet trial balance page 155