Accounting Bellwork 3 rd Hour: List FOUR facts that you can remember about the general journal or general ledger. Be specific. Examples: 1.When bringing a balance forward in a ledger account, you write the word balance in the description column. 2.When recording entries in the journal you always include the source document for each transaction.

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?

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.

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

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.)

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

All of the general ledger accounts are listed in order on the worksheet, even those that have a zero balance. Listing all the accounts avoids accidentally omitting an account and ensures that the worksheet contains all the accounts needed to prepare the financial reports. All of the general ledger accounts are listed in order on the worksheet, even those that have a zero balance. Listing all the accounts avoids accidentally omitting an account and ensures that the worksheet contains all the accounts needed to prepare the financial reports. Section 1Preparing the Work Sheet (con’t.) The Account Name and Trial Balance Sections

Accounts with debit balances are entered in the Trial Balance debit column. Accounts with credit balances are entered in the Trial Balance credit column. Accounts with debit balances are entered in the Trial Balance debit column. Accounts with credit balances are entered in the Trial Balance credit column. Section 1Preparing the Work Sheet (con’t.)

Ruling and Totaling the Trial Balance Section Section 1Preparing the Work Sheet (con’t.)  Total debits must equal total credits.  Ruling means “drawing a line.”  A single rule drawn under a column of amounts means that the entries above the rule are to be added or subtracted.  A double rule means that the amounts just above are totals and that no other entries will be made.

Demonstration Problems Ch8-1 & 8-2

Simmons Garden Shop Worksheet For the Year Ended December 31, 20-- Holt’s Hardware Store Worksheet For the Quarter Ended September 30, 20--

Frei Consultants Inc. Worksheet For the Year Ended December 31,

Check Your Understanding p186 Thinking Critically 1 & 2 Problem 8-1 Problem 8-2 Thinking Critically 1 & 2 Problem 8-1 Problem 8-2 Section 1Preparing the Work Sheet (con’t.)