1. LESSON 6-1 Creating a Worksheet
12/4/2018
LESSON 6-1
Creating a Worksheet

2. TERMS fiscal period work sheet trial balance page 155 LESSON 6-1
12/4/2018
TERMS
page 155
fiscal period
work sheet
trial balance
fiscal period: the length of time for which a business summarizes and reporsts financial information
work sheet: a columnar from used to summarize general ledger information needed to prepare financial statements
trial balance: proof of the equality to the debits and credits in a general ledger
LESSON 6-1

3. PREPARING THE HEADING OF A WORK SHEET
LESSON 6-1
12/4/2018
PREPARING THE HEADING OF A WORK SHEET
page 153
Name of Company 1
Name of Report 2
Date of Report 3
LESSON 6-1

4. PREPARING A TRIAL BALANCE ON A WORK SHEET
LESSON 6-1
12/4/2018
PREPARING A TRIAL BALANCE ON A WORK SHEET
page 154 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
LESSON 6-1

5. LESSON 6-1 Planning Adjusting Entries on a Work Sheet
12/4/2018
LESSON 6-2
Planning Adjusting Entries on a Work Sheet

6. TERM adjustments page 161 LESSON 6-1 LESSON 6-1 12/4/2018
Adjustments: changes recorded on a worksheet to update general ledger accounts at the end of the fiscal period
LESSON 6-1

7. SUPPLIES ADJUSTMENT ON A WORK SHEET
LESSON 6-1
12/4/2018
SUPPLIES ADJUSTMENT ON A WORK SHEET
page 158 2 3 1
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.
LESSON 6-1

8. PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET
LESSON 6-1
12/4/2018
PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET
page 159 2 3 1
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.
LESSON 6-1

9. PROVING THE ADJUSTMENTS COLUMNS OF A WORK SHEET
LESSON 6-1
12/4/2018
PROVING THE ADJUSTMENTS COLUMNS OF A WORK SHEET
page 160 1 2 3
1. Rule a single line.
2. Add both the Adjustments Debit and Credit columns. Write each column’s total.
3. Rule double lines.
LESSON 6-1

10. LESSON 6-1 Extending Financial Statement Information on a Work Sheet
12/4/2018
LESSON 6-3
Extending Financial Statement Information on a Work Sheet

11. TERMS balance sheet income statement net income net loss page 166
LESSON 6-1
12/4/2018
TERMS
page 166
balance sheet
income statement
net income
net loss
Income Statement: a financial statement showing the revenue and expenses for a fiscal period
Balance sheet: a financial statement that reports assets, liabilities, and owner’s equity on a specific date
Net loss: the difference between total revenue and total expenses when total revenue is less than total expenses
Net Income: the difference between total revenue and total expenses when total revenue is greater
LESSON 6-1

12. EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET
LESSON 6-1
12/4/2018
EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET
page 162 2 1 3
1. Debit balances without adjustments
2. Debit balances with adjustments
3. Credit balances without adjustments
LESSON 6-1

13. EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET
LESSON 6-1
12/4/2018
EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET
page 163 1 2 3
1. Sales balance
2. Expense balances without adjustments
3. Expense balances with adjustments
LESSON 6-1

14. RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET
LESSON 6-1
12/4/2018
RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET
page 164 4 1 2 3 5 6 7
1. Single rule
2. Totals
4. Extend net income
6. Totals
3. Net income
5. Single rule
7. Double rule
LESSON 6-1

15. CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET
LESSON 6-1
12/4/2018
CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET
page 165 1 2 3 4
1. Single rule
2. Totals
3. Net loss
4. Extend net loss
LESSON 6-1

16. SEQUENCE OF TASKS TO PREPARE A WORK SHEET
LESSON 6-1
12/4/2018
SEQUENCE OF TASKS TO PREPARE A WORK SHEET
page 160 C
1. Write the heading.
2. Record the trial balance.
3. Record the supplies adjustment.
4. Record the prepaid insurance adjustment.
5. Prove the Adjustments columns.
6. Extend all balance sheet account balances.
7. Extend all income statement account balances.
8. Calculate and record the net income (or net loss).
9. Total and rule the Income Statement and Balance Sheet columns.
LESSON 6-1

17. LESSON 6-1
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LESSON 6-1

18. LESSON 6-1
12/4/2018 1
LESSON 6-1

19. LESSON 6-1
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496400
10000
15000
11000
102500
120000
20000
5000
500000
62500
356500
21300
2800
30000
496400
10000
15000
31000
110000
20000
5000
500000
62500 6
(a) 71500 3
(b) 10000 4
11000
21300
2800
30000
356500
10000
71500 7 5
881500
881500
81500
81500
146600
356500
734900
525000
Net Income 8
209900
209900 9
356500
356500
734900
734900
LESSON 6-1

20. LESSON 6-1 Finding and Correcting Errors on the Work Sheet
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LESSON 6-4
Finding and Correcting Errors on the Work Sheet

21. CORRECTING AN ERROR IN POSTING TO THE WRONG ACCOUNT
LESSON 6-1
12/4/2018
CORRECTING AN ERROR IN POSTING TO THE WRONG ACCOUNT
page 168 2
Correct entry 1
Incorrect entry
1. Draw a line through the entire incorrect entry. Recalculate the account balance and correct the work sheet.
2. Record the posting in the correct account. Recalculate the account balance, and correct the work sheet.
LESSON 6-1

22. CORRECTING AN INCORRECT AMOUNT
LESSON 6-1
12/4/2018
CORRECTING AN INCORRECT AMOUNT
page 169 2 1 3
1. Draw a line through the incorrect amount.
2. Write the correct amount just above the correction in the same space.
3. Recalculate the account balance, and correct the account balance on the work sheet.
LESSON 6-1

23. CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMN
LESSON 6-1
12/4/2018
CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMN
page 169 1 2 3 5 4 6
4. Draw a line through the incorrect item in the account.
5. Record the posting in the correct amount column.
6. Recalculate the account balance, and correct the work sheet.
LESSON 6-1