1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Creating a Worksheet

2. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Consistent Reporting – The accounting concept applied when the same accounting procedures are followed in the same way in each accounting period. Ex: reporting sales one year and deliveries the next year

3. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Accounting Period Cycle – Concept applied when changes in financial information are reported for a specific period of time in the form of financial statements. Choose a length of time that meets the needs of the business

4. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 What are financial statements? Why would you use them? How does a worksheet help prepare financial statements?

5. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 1.To summarize general ledger account balances to prove that debits equal credits 2.To plan needed changes to general ledger accounts to bring account balances up to date

6. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 3.To separate general ledger account balances according to the financial statements to be prepared 4.To calculate the amount of net income or net loss for a fiscal period

7. CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 6-1 PREPARING THE HEADING OF A WORK SHEET page 153 Name of Company 1 Name of Report 2 Date of Report 3

8. CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON 6-1 1.Write the general ledger account titles. 2.Write the general ledger debit account balances. Write the general ledger credit account balances. 4.Add both the Trial Balance Debit and Credit columns. 3.Rule a single line across the two Trial Balance columns. 5.Write each column’s total below the single line. 6.Rule double lines across both Trial Balance columns. PREPARING A TRIAL BALANCE ON A WORK SHEET page 154 1 2 4 3 5 6

9. CENTURY 21 ACCOUNTING © Thomson/South-Western 9 LESSON 6-1 TERMS REVIEW fiscal period work sheet trial balance page 155