1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-3 Extending Financial Statement Information on a Work Sheet Original created by M.C. McLaughlin, Thomson/South-Western Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 6-3 Extending Financial Statement Information on a Work Sheet At the end of each fiscal period, businesses prepare two financial statements from information on a worksheet. The up to date account balances on a work sheet are extended to columns for the two financial statements. A financial statement that reports assets, liabilities, and owner’s equity on a specific date is called a balance sheet. Up-to-date balance sheet account balances are extended to the Balance Sheet Debit & Credit columns of the work sheet A financial statement showing the revenue and expenses for a fiscal period is called an income statement Up-to-date income statement account balances are extended to the Income Statement Debit & Credit columns of the work sheet

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 6-3 EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET page 162 1.Debit balances without adjustments 2.Debit balances with adjustments 3.Credit balances without adjustments 3 2 1

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 6-3 EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET page 163 1.Sales balance 2.Expense balances without adjustments 3.Expense balances with adjustments 1 3 2

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 6-3 1.Single rule 2.Totals 3.Net income RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET page 164 4.Extend net income6.Totals 6 7 3 5 2 1 4 5.Single rule7.Double rule

6. CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 6-3 CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET page 165 2.Totals 3.Net loss 4.Extend net loss 1.Single rule 2 1 3 4

7. CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 6-3 TERMS REVIEW balance sheet income statement net income net loss page 166