1. Chapter 7 – Work Sheet for a Service Business
Accounting I
Chapter 7 – Work Sheet for a Service Business

2. TERMS REVIEW fiscal period work sheet trial balance
Lesson 7-1, page 158

3. TERMS REVIEW Fiscal Period
The length of time for which a business summarizes and reports financial information.
Lesson 7-1, page 156

4. TERMS REVIEW Work Sheet
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
Lesson 7-1, page 156

5. TERMS REVIEW Trial Balance
A proof of the equality of debits and credit is a general ledger.
Lesson 7-1, page 157

6. PREPARING THE HEADING OF A WORK SHEET
Lesson 7-1
PREPARING THE HEADING OF A WORK SHEET 1 2 3
1. Name of Company
2. Name of Report
3. Date of Report
Lesson 7-1, page 156

7. PREPARING A TRIAL BALANCE ON A WORK SHEET2
1. Account Titles 1
2. Account Balances
3. Single Rule
4. Add Totals
5. Write Totals
6. Double Rule 3
4 & 5 6
Lesson 7-1, page 157

8. Work Together &
On Your Own –
Page

9. TERMS REVIEW
adjustments
Lesson 7-2, page 164

10. TERMS REVIEW Adjustments
Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
Lesson 7-2, page 160

11. SUPPLIES ADJUSTMENT ON A WORK SHEET2 3 1
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment with a small letter a in parentheses, (a).
Lesson 7-2, page 161

12. PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET2 3 1
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment with a small letter b in parentheses, (b).
Lesson 7-2, page 162

13. PROVING THE ADJUSTMENTS COLUMNS OF A WORK SHEET
1. Rule a single line.
2. Add both the Adjustments Debit and Credit columns.
3. Rule double lines. 1 2 3
Lesson 7-2, page 163

14. Work Together &
On Your Own –
Page 164

15. TERMS REVIEW
income statement
net income
net loss
Lesson 7-3, page 169

16. TERMS REVIEW Income Statement
A financial statement showing the revenue and expenses for a fiscal period.
Lesson 7-3, page 166

17. TERMS REVIEW Net Income
The difference between total revenue and total expenses when total revenue is greater.
Lesson 7-3, page 167

18. EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET
Lesson 7-1
EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET 1 2 3
1. Debit Balances without Adjustments
2. Debit Balances with Adjustments
3. Credit Balances without Adjustments
Lesson 7-3, page 165

19. EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET1 2 3
1. Sales Balance
2. Expense Balances without Adjustments
3. Expense Balances with Adjustments
Lesson 7-3, page 166

20. RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET
1. Single Rule
2. Total
3. Net Income
4. Extend Net Income
5. Single Rule
6. Totals
7. Double Rule 1 2 4 5 3 6 7
Lesson 7-3, page 167

21. CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET1 3 2 4
1. Single Rule
2. Totals
3. Net Loss
4. Extend Net Loss
Lesson 7-3, page 168

22. Work Together &
On Your Own –
Page 169

23. CHECKING FOR TYPICAL CALCULATION ERRORS
Lesson 7-1
CHECKING FOR TYPICAL CALCULATION ERRORS
When two column totals are not in balance, subtract the smaller total from the larger total to find the difference.
Check the difference between the two amounts against the following guides.
1. The difference is 1, such as $.01, $.10, $1.00, or $10.00.
2. The difference can be divided evenly by 2.
3. The difference can be divided evenly by 9.
4. The difference is an omitted amount.
Lesson 7-4, page 170

24. CHECKING FOR ERRORS IN THE WORK SHEET
Check for Errors in the Trial Balance Column
Have all general ledger account balances been copies in the Trial Balance column correctly?
Have all general ledger account balances been recorded in the correct Trial Balance column?
Check for Errors in the Adjustments Columns
Do the debits equal the credits for each adjustment?
Is the amount for each adjustment correct?
Check for Errors in Income Statement and Balance Sheet Columns
Has each amount been copied correctly?
Has each amount been extended to the correct column?
Has the net income/loss been calculated correctly?
Has the net income/loss been recorded in the correct column?
Lesson 7-4, page 171

25. Work Together &
On Your Own –
Page 173