$ $ $ $ Section 2 Extending Amounts Across the Work Sheet Chapter 8 $ Section 2 Extending 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. $ $

$ $ $ $ Why It’s Important Key Terms Chapter 8 matching principle Section 2 Extending Amounts Across the Work Sheet (cont'd.) Chapter 8 $ Why It’s Important Preparing the work sheet helps you understand the relationship of all ledger accounts and where they are reported. $ $ Key Terms matching principle net income net loss $

$ $ $ $ The Balance Sheet Section Chapter 8 Section 2 Extending Amounts Across the Work Sheet (cont'd.) Chapter 8 $ The Balance Sheet Section $ $ $

$ $ $ $ The Income Statement Section Chapter 8 Section 2 Extending Amounts Across the Work Sheet (cont'd.) Chapter 8 $ The Income Statement Section $ $ $

$ $ $ $ Totaling the Income Statement and Balance Sheet Sections Section 2 Extending Amounts Across the Work Sheet (cont'd.) Chapter 8 $ Totaling the Income Statement and Balance Sheet Sections $ $ $

$ $ $ $ Showing Net Income on the Work Sheet Chapter 8 Section 2 Extending Amounts Across the Work Sheet (cont'd.) Chapter 8 $ Showing Net Income on the Work Sheet $ $ $

$ $ $ $ Completing the Work Sheet Chapter 8 Section 2 Extending Amounts Across the Work Sheet (cont'd.) Chapter 8 $ Completing the Work Sheet $ $ $

$ $ $ $ Check Your Understanding Chapter 8 Section 2 Extending Amounts Across the Work Sheet (cont'd.) Chapter 8 $ Check Your Understanding $ What is the effect of net income on the capital account? $ $