1. Preparing a Worksheet
Chapter 6, Section 1

2. What is accounting? Planning Recording Analyzing Interpreting
Which of these have we done so far?
CONCEPT: Consistent Reporting
Same accounting procedures are followed in the same way in each accounting period

3. Fiscal Periods
Fiscal Period – length of time for which a business summarizes and reports financial information
CONCEPT: Accounting Period Cycle
Changes in financial information are reported for a specific period of time in the form of financial statements
Usually one year
Does not always match the calendar year

4. Work Sheet Planning document Summarizes financial information
4 main reasons to use work sheet
Make sure debits equal credits
Bring account balances up-to-date
Separate accounts according to financial statements
Calculate net income/loss

5. Preparing a Work Sheet Name of Company Name of Report Date of Report
Heading
Company Name
Document Name – Worksheet
Date – For (period) ended…
Name of Company 1
Name of Report 2
Date of Report 3

6. Preparing a Trial Balance Purpose: Shows that debits and credits are equal.2
1. Write the general ledger account titles.
2. Write the general ledger debit account balances. Write the general ledger credit account balances. 1 4
3. Rule a single line across the two Trial Balance columns.
4. Add both the Trial Balance Debit and Credit columns.
5. Write each column’s total below the single line. 3
6. Rule double lines across both Trial Balance columns. 5 6

7. Assignments
Work Together 6-1 (Textbook pg. 155)