1. The Six-Column Work Sheet Making Accounting Relevant The ability to organize information is an important skill. In your work, you’ll be asked to present ideas and data. Making Accounting Relevant The ability to organize information is an important skill. In your work, you’ll be asked to present ideas and data. In your classes, what information have you been asked to organize and present to others? What did you do to prepare for these presentations?

2. Section 1Preparing the Work Sheet What You’ll Learn  The purpose of the work sheet.  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. What You’ll Learn  The purpose of the work sheet.  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.

3. Why It’s Important The work sheet is a tool the accountant uses to collect all the information needed for the end-of- period activities. Why It’s Important The work sheet is a tool the accountant uses to collect all the information needed for the end-of- period activities. Section 1Preparing the Work Sheet (con’t.) Key Terms  work sheet  ruling Key Terms  work sheet  ruling

4. The Sixth Step of the Accounting Cycle: The Work Sheet A work sheet is used to collect information from the ledger accounts in one place. The Sixth Step of the Accounting Cycle: The Work Sheet A work sheet is used to collect information from the ledger accounts in one place. Section 1Preparing the Work Sheet (con’t.)

5. The Work Sheet Heading (1)The name of the business Section 1Preparing the Work Sheet (con’t.) (2)The name of the account- ing form (3)The period covered by the work sheet (Who?) (What?) (When?)

6. The Account Name and Trial Balance Sections Section 1Preparing the Work Sheet (con’t.)

7. Ruling and Totaling the Trial Balance Section Section 1Preparing the Work Sheet (con’t.)  Total debits must equal total credits.

8. Section 2Extending Amounts Across the Work Sheet What You’ll Learn  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. What You’ll Learn  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.

9. Why It’s Important Preparing the work sheet helps you understand the relationship of all ledger accounts and where they are reported. Why It’s Important Preparing the work sheet helps you understand the relationship of all ledger accounts and where they are reported. Section 2Extending Amounts Across the Work Sheet (con’t.) Key Terms  matching principle  net income  net loss Key Terms  matching principle  net income  net loss

10. The Balance Sheet Section Section 2Extending Amounts Across the Work Sheet (con’t.)

11. The Income Statement Section Section 2Extending Amounts Across the Work Sheet (con’t.)

12. Totaling the Income Statement and Balance Sheet Sections Section 2Extending Amounts Across the Work Sheet (con’t.)

13. Showing Net Income on the Work Sheet Section 2Extending Amounts Across the Work Sheet (con’t.)

14. Completing the Work Sheet Section 2Extending Amounts Across the Work Sheet (con’t.)