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

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 6-1 TERMS fiscal period work sheet trial balance page 155

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

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 6-1 1.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 154 1 2 4 3 5 6

6. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-2 Planning Adjusting Entries on a Work Sheet

7. CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 6-1 TERM adjustments page 161

8. CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 6-1 SUPPLIES ADJUSTMENT ON A WORK SHEET 1 2 page 158 3 1.Write the debit amount. 2.Write the credit amount. 3.Label the two parts of this adjustment.

9. CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON 6-1 PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET page 159 1 2 3 1.Write the debit amount. 2.Write the credit amount. 3.Label the two parts of this adjustment.

10. CENTURY 21 ACCOUNTING © Thomson/South-Western 9 LESSON 6-1 PROVING THE ADJUSTMENTS COLUMNS OF A WORK SHEET page 160 3.Rule double lines. 2.Add both the Adjustments Debit and Credit columns. Write each column’s total. 1.Rule a single line. 1 3 2

11. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-3 Extending Financial Statement Information on a Work Sheet

12. CENTURY 21 ACCOUNTING © Thomson/South-Western 11 LESSON 6-1 TERMS balance sheet income statement net income net loss page 166

13. CENTURY 21 ACCOUNTING © Thomson/South-Western 12 LESSON 6-1 EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET page 162 1.Debit balances without adjustments 2.Debit balances with adjustments 3.Credit balances without adjustments 3 2 1

14. CENTURY 21 ACCOUNTING © Thomson/South-Western 13 LESSON 6-1 EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET page 163 1.Sales balance 2.Expense balances without adjustments 3.Expense balances with adjustments 1 3 2

15. CENTURY 21 ACCOUNTING © Thomson/South-Western 14 LESSON 6-1 1.Single rule 2.Totals 3.Net income RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET page 164 4.Extend net income6.Totals 6 7 3 5 2 1 4 5.Single rule7.Double rule

16. CENTURY 21 ACCOUNTING © Thomson/South-Western 15 LESSON 6-1 CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET page 165 2.Totals 3.Net loss 4.Extend net loss 1.Single rule 2 1 3 4

17. CENTURY 21 ACCOUNTING © Thomson/South-Western 16 LESSON 6-1 SEQUENCE OF TASKS TO PREPARE A WORK SHEET page 160 C 1.Write the heading. 2.Record the trial balance. 3.Record the supplies adjustment. 4.Record the prepaid insurance adjustment. 5.Prove the Adjustments columns. 6.Extend all balance sheet account balances. 7.Extend all income statement account balances. 8.Calculate and record the net income (or net loss). 9.Total and rule the Income Statement and Balance Sheet columns.

18. CENTURY 21 ACCOUNTING © Thomson/South-Western 17 LESSON 6-1

19. CENTURY 21 ACCOUNTING © Thomson/South-Western 18 LESSON 6-1 1

20. CENTURY 21 ACCOUNTING © Thomson/South-Western 19 LESSON 6-1 (b) 10000 4 (a) 71500 3 496400 10000 15000 11000 10000 102500 120000 20000 5000 500000 62500 356500 21300 2800 30000 881500 81500 146600356500734900525000 356500734900 496400 10000 15000 10000 31000 110000 20000 5000 500000 62500 6 11000 21300 2800 30000 356500 10000 71500 7 209900 Net Income 8 9 1 2 5 356500734900

21. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-4 Finding and Correcting Errors on the Work Sheet

22. CENTURY 21 ACCOUNTING © Thomson/South-Western 21 LESSON 6-1 CORRECTING AN ERROR IN POSTING TO THE WRONG ACCOUNT page 168 1.Draw a line through the entire incorrect entry. Recalculate the account balance and correct the work sheet. 2 Correct entry 1 Incorrect entry 2.Record the posting in the correct account. Recalculate the account balance, and correct the work sheet.

23. CENTURY 21 ACCOUNTING © Thomson/South-Western 22 LESSON 6-1 CORRECTING AN INCORRECT AMOUNT 1 2 3 page 169 1.Draw a line through the incorrect amount. 2.Write the correct amount just above the correction in the same space. 3.Recalculate the account balance, and correct the account balance on the work sheet.

24. CENTURY 21 ACCOUNTING © Thomson/South-Western 23 LESSON 6-1 1 2 3 CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMN 546 page 169 6.Recalculate the account balance, and correct the work sheet. 5.Record the posting in the correct amount column. 4.Draw a line through the incorrect item in the account.

25. CENTURY 21 ACCOUNTING © Thomson/South-Western 24 LESSON 6-1 Chapter 6 Assignments: Study Guide 6 Ch 6 Mastery Extra Credit Ch 5-6 crossword Ch 6 Challenge