1. Step 1
The six-column work sheet prepares you for the eight-column work sheet in Chapter 9
Step 1: Write in the heading
Indicate the fiscal period

2. Step 2
Step 2: Enter, total, and rule the trial balance

3. Step 3
Step 3: Copy the balance sheet amounts to the balance sheet columns

4. Step 4
Step 4: Copy the income statement amounts to the income stmt. columns

5. Step 5 Step 5: Rule and total the last four columns Total Revenue
Total Expenses
Net Income (the balancing figure)
Step 5: Rule and total the last four columns

6. Step 6
Step 6: Record the net income in the outer two of the last four columns

7. Step 7
Step 7: Total and rule the work sheet

8. Net Loss 1
Changes shown in red. Total Expenses are now higher than Total Revenue.
Net Loss Situation: Assume Wages and Bank Loan were $40,000 higher

9. Net Loss 2
The amount of the net loss is placed in the inner two of the last four columns

10. Net Loss 3
Rule and total the work sheet for a loss situation