1. The Six Column Work Sheet
Chapter 8
The Six Column Work Sheet

2. Learning Objectives Explain the purpose of the work sheet
Describe the parts of a six-column work sheet
Prepare a six column work sheet
Calculate net loss and net income
Define the accounting terms introduced in this chapter.

3. Section 8-1 What you will learn? Why it is important?
The purpose of the worksheet
The kinds of information contained in the heading.
How to prepare a trial balance on a work sheet.
How to rule a section of the work sheet
Why it is important?
The worksheet is a tool the accountant uses to collect all the information needed for the end-of-period activities.

4. Preparing the Worksheet

5. The 6th Step: The Work Sheet
Working paper used to collect information from the ledger accounts in one place.
Tool the accountant uses to prepare financial statements
May be prepared in pencil

6. The work sheet The heading: Who, What, When (always centered)
The account name section
The trial balance section
The income statement section
The balance sheet section

7. The Account Name and Trial Balance Sections
List all accounts with account numbers in the order it is in the general ledger with the balances

8. Ruling and Totaling

9. Thinking Critically 1. What is the purpose of the work sheet?
What is the purpose of ruling in accounting?

10. Chap 8: Section 2 What you will learn? Why it’s important?
How to extend amounts to the Balance Sheet and Income Statement sections
The importance of the matching principle.
How to calculate and show the net income or net loss on the work sheet.
Why it’s important?
Preparing the work sheet helps you understand the relationship of all ledger accounts and where they are reported.

11. The Balance Sheet Section
Contains the “balance sheet” accounts—assets, liabilities and owner’s equity accounts
After the trial balance section is completed:
extend, or transfer, the appropriate amounts to the Balance sheet section
Extend debit amounts to debit column
Extend credit amounts to credit columns

12. The Balance Sheet Section

13. The Income Statement Section
Contains the revenue and expense accounts
Revenue balances extended to credit side
Expense balances extended to debit side

14. Income Statement Section