1. BAF3M Accounting Textbook Departure: “The 6-Column Work Sheet”

2. Rationale … Learning how to complete the 6 column work sheet will help when learning the end of period procedures of “adjusting” and “closing” This process uses the “8 column” work sheet. Let’s learn the 6 column before taking on the 8 column

3. Purpose of the Work Sheet The work sheet is an informal accounting document used to help organize all data in order to help produce financial statements

4. The 6 columns are: Trial Balance Debit Trial Balance Credit Income Statement Debit Income Statement Credit Balance Sheet Debit Balance Sheet Credit The Six Column Worksheet

5. Step 1: Complete the heading, including careful description of the fiscal period The Six Column Worksheet

6. Step 2: Enter, total, and rule the trial balance amounts The Six Column Worksheet

7. Step 3a: Copy the balance sheet amounts to the balance sheet columns The Six Column Worksheet

8. Step 3b: Copy the income statement amounts to the income stmt. columns The Six Column Worksheet

9. Total Revenue Total Expenses Net Income (the balancing figure) Step 4a: Total and rule the last four columns The Six Column Worksheet

10. Step 4b: Record the net income in the outer two of the last four columns The Six Column Worksheet

11. Step 4c: Total and rule the work sheet The Six Column Worksheet

12. Things change if there is a NET LOSS situation The following slides show what this situation looks like

13. Net Loss Situation: Assume Wages and Bank Loan were $40,000 higher Changes shown in red. Total Expenses are now higher than Total Revenue. The Six Column Worksheet

14. The amount of the net loss is placed in the inner two of the last four columns The Six Column Worksheet

15. Rule and total the work sheet for a loss situation The Six Column Worksheet

16. The work sheet and financial statements –It’s the duty of the accounting dept to produce top notch financial statements for owners –The completed worksheet contains all the info needed to create the I/S and B/S The Six Column Work sheet