Preparing a worksheet
-
Upload
melvin-taylor -
Category
Documents
-
view
26 -
download
0
description
Transcript of Preparing a worksheet
![Page 1: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/1.jpg)
Preparing a worksheet
Chapter 6
Section 1
![Page 2: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/2.jpg)
What is the worksheet
• Worksheet is used for a couple of things:– Recheck our trial balance– To make adjustments to accounts– To prepare our balance sheet at the end of
the year– To prepare out income statement at the end
of the year– To determine our net income
![Page 3: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/3.jpg)
The 6th step of the Accounting Cycle: The work Sheet
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash
Petty Cash
Account Rec. - Kids Time
Accounts Rec. - Learn N Play
Supplies
![Page 4: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/4.jpg)
Step #1
• Take all of the balances from the general ledger and place them into the Trial balance columns of the worksheet.
![Page 5: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/5.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272
Petty Cash 200
Account Rec. - Kids Time 100
Accounts Rec. - Learn N Play 20
Supplies 4751
Prepaid Insurance 1200
Accounts Pay - Ling Music Supp 1360
Accounts Pay - Sullivan Off. Supp 20
Barbara Trevino, Cap 10000
Barbara Trevino, Draw 600
Income Summary
Sales 4411
Advertising Expense 2730
Insurance Expense
Miscellaneous Expense 10
Rent Expense 250
Supplies Expense
Utilities Expense 115
Net Income
156791 156791
![Page 6: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/6.jpg)
Work on “on your own” on page153
![Page 7: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/7.jpg)
Adjustments
Section 2
![Page 8: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/8.jpg)
Definition of adjustment
The number of things change from the beginning of the year to the end of the year.
Supplies Beg------------------ Supplies End
100 10
Prepaid Insurance Beg -----PPI End
1200 1100
![Page 9: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/9.jpg)
• We record those changes (adjustments) in the adjustment columns.
• Because both of these accounts are assets. If the number goes up we Debit
• If it goes down we credit
![Page 10: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/10.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272
Petty Cash 200
Account Rec. - Kids Time 100
Accounts Rec. - Learn N Play 20
Supplies 4751 2564
Prepaid Insurance 1200 100
Accounts Pay - Ling Music Supp 1360
Accounts Pay - Sullivan Off. Supp 20
Barbara Trevino, Cap 10000
Barbara Trevino, Draw 600
Income Summary
Sales 4411
Advertising Expense 2730
Insurance Expense 100
Miscellaneous Expense 10
Rent Expense 250
Supplies Expense 2564
Utilities Expense 115
15791 15791 2664 2664
Net Income
a
a
b
b
![Page 11: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/11.jpg)
• Please work “on your own” on page 158
![Page 12: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/12.jpg)
Chapter 8
Section 3
Extending Amounts Across the worksheet
![Page 13: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/13.jpg)
Next step in preparing a work sheet
• Step 1– After placing all of the accounts in the proper
places and putting the numbers that correspond with them, and making sure that the two columns equal.
• Step 2– Take the numbers and move them into the
proper columns
![Page 14: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/14.jpg)
Three major rules to remember
• Accounts that go on the Income Statement– Revenue, expenses
![Page 15: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/15.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272
Petty Cash 200
Account Rec. - Kids Time 100
Accounts Rec. - Learn N Play 20
Supplies 4751 2564
Prepaid Insurance 1200 100
Accounts Pay - Ling Music Supp 1360
Accounts Pay - Sullivan Off. Supp 20
Barbara Trevino, Cap 10000
Barbara Trevino, Draw 600
Income Summary
Sales 4411 4411
Advertising Expense 2730 2730
Insurance Expense 100 100
Miscellaneous Expense 10 10
Rent Expense 250 250
Supplies Expense 2564 2564
Utilities Expense 115 115
15791 15791 2664 2664
Net Income
![Page 16: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/16.jpg)
Three major rules to remember
• Accounts that go on the Income Statement– Revenue, expenses
• Accounts that go on the Balance Sheet– Assets, Liabilities, Owners Equity
![Page 17: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/17.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272 8272
Petty Cash 200 200
Account Rec. - Kids Time 100 100
Accounts Rec. - Learn N Play 20 20
Supplies 4751 2564 2187
Prepaid Insurance 1200 100 1100
Accounts Pay - Ling Music Supp 1360 1360
Accounts Pay - Sullivan Off. Supp 20 20
Barbara Trevino, Cap 10000 10000
Barbara Trevino, Draw 600 600
Income Summary
Sales 4411 4411
Advertising Expense 2730 2730
Insurance Expense 100 100
Miscellaneous Expense 10 10
Rent Expense 250 250
Supplies Expense 2564 2564
Utilities Expense 115 115
15791 15791 2664 2664
Net Income
![Page 18: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/18.jpg)
Three major rules to remember
• Accounts that go on the Income Statement– Revenue, expenses
• Accounts that go on the Balance Sheet– Assets, Liabilities, Owners Equity
• If all else fails, everything above the INCOME SUMMARY goes in the balance sheet, every thing after goes in the income statement
![Page 19: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/19.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272 8272
Petty Cash 200 200
Account Rec. - Kids Time 100 100
Accounts Rec. - Learn N Play 20 20
Supplies 4751 2564 2187
Prepaid Insureance 1200 100 1100
Accounts Pay - Ling Music Supp 1360 1360
Accounts Pay - Sullivan Off. Supp 20 20
Barbara Trevino, Cap 10000 10000
Barbara Trevino, Draw 600 600
Income Summary
Sales 4411 4411
Advertising Expense 2730 2730
Insureance Expense 100 100
Miscellaneous Expense 10 10
Rent Expense 250 250
Supplies Expense 2564 2564
Utilities Expense 115 115
15791 15791 2664 2664
Net Income
![Page 20: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/20.jpg)
Total the columns
• Total the columns in the income statement
• Total the columns in the balance sheet
![Page 21: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/21.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272 8272
Petty Cash 200 200
Account Rec. - Kids Time 100 100
Accounts Rec. - Learn N Play 20 20
Supplies 4751 2564 2187
Prepaid Insurance 1200 100 1100
Accounts Pay - Ling Music Supp 1360 1360
Accounts Pay - Sullivan Off. Supp 20 20
Barbara Trevino, Cap 10000 10000
Barbara Trevino, Draw 600 600
Income Summary
Sales 4411 4411
Advertising Expense 2730 2730
Insurance Expense 100 100
Miscellaneous Expense 10 10
Rent Expense 250 250
Supplies Expense 2564 2564
Utilities Expense 115 115
15791 15791 2664 2664 3312 4411 12479 11380
Net Income
![Page 22: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/22.jpg)
Finishing the work sheet
• In the income statement– Take the credit side and subtract out the debit
side.
• In the balance sheet columns– Take the debit side and subtract out the credit
side.
![Page 23: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/23.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272 8272
Petty Cash 200 200
Account Rec. - Kids Time 100 100
Accounts Rec. - Learn N Play 20 20
Supplies 4751 2564 2187
Prepaid Insureance 1200 100 1100
Accounts Pay - Ling Music Supp 1360 1360
Accounts Pay - Sullivan Off. Supp 20 20
Barbara Trevino, Cap 10000 10000
Barbara Trevino, Draw 600 600
Income Summary
Sales 4411 4411
Advertising Expense 2730 2730
Insureance Expense 100 100
Miscellaneous Expense 10 10
Rent Expense 250 250
Supplies Expense 2564 2564
Utilities Expense 115 115
15791 15791 2664 2664 3312 4411 12479 11380
Net Income 1099 1099
![Page 24: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/24.jpg)
Finishing the work sheet
• In the income statement– Take the credit side and subtract out the debit
side.
• In the balance sheet columns– Take the debit side and subtract out the credit
side.
• Rule of thumb after subtracting the numbers it always goes under the smaller of the amounts so that we may get it to equal.
![Page 25: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/25.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272 8272
Petty Cash 200 200
Account Rec. - Kids Time 100 100
Accounts Rec. - Learn N Play 20 20
Supplies 4751 2564 2187
Prepaid Insureance 1200 100 1100
Accounts Pay - Ling Music Supp 1360 1360
Accounts Pay - Sullivan Off. Supp 20 20
Barbara Trevino, Cap 10000 10000
Barbara Trevino, Draw 600 600
Income Summary
Sales 4411 4411
Advertising Expense 2730 2730
Insureance Expense 100 100
Miscellaneous Expense 10 10
Rent Expense 250 250
Supplies Expense 2564 2564
Utilities Expense 115 115
15791 15791 2664 2664 3312 4411 12479 11380
Net Income 1099 1099
![Page 26: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/26.jpg)
Encore Music
Worksheet
For Month Ending August 31
Account Title Trial Balance Adjustments Income Statement Balance Sheet
Cash 8272 8272
Petty Cash 200 200
Account Rec. - Kids Time 100 100
Accounts Rec. - Learn N Play 20 20
Supplies 4751 2564 2187
Prepaid Insurance 1200 100 1100
Accounts Pay - Ling Music Supp 1360 1360
Accounts Pay - Sullivan Off. Supp 20 20
Barbara Trevino, Cap 10000 10000
Barbara Trevino, Draw 600 600
Income Summary
Sales 4411 4411
Advertising Expense 2730 2730
Insurance Expense 100 100
Miscellaneous Expense 10 10
Rent Expense 250 250
Supplies Expense 2564 2564
Utilities Expense 115 115
15791 15791 2664 2664 3312 4411 12479 11380
Net Income 1099 1099
4411 4411 12479 12479
![Page 27: Preparing a worksheet](https://reader036.fdocuments.in/reader036/viewer/2022062408/56813944550346895da0de57/html5/thumbnails/27.jpg)
• Problems
• 7-1,2,3,4,5