Accounting Bellwork 3 rd Hour What information do

Accounting Bellwork 3 rd Hour: What information do you find in the heading of an accounting document.

Section 2 Extending Amounts Across the Work Sheet What You’ll Learn = How to extend amounts to the Balance Sheet and Income Statement sections. = The importance of the matching principle. = How to calculate and show the net income or net loss on the work sheet.

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Why It’s Important Preparing the work sheet helps you understand the relationship of all ledger accounts and where they are reported. Key Terms = matching principle = net income = net loss

Section 2 Extending Amounts Across the Work Sheet (con’t. ) The Balance Sheet Section Balancing the ALOE

Section 2 Extending Amounts Across the Work Sheet (con’t. ) The Income Statement Section Income --- Revenue and Expenses

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Totaling the Income Statement and Balance Sheet Sections

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Showing Net Income on the Work Sheet Net income is when revenue is greater than expenses

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Matching Principle is when expenses incurred in an accounting period are matched with revenue earned during the same period in order to provide a reliable measure of profit.

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Net income is the amount of revenue that remains after expenses for the period are subtracted. Totals should be equal.

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Completing the Work Sheet

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Completing the Work Sheet A net loss occurs when the expenses are greater than the revenue.

Demonstration Problems Ch 8 Problems 8 -4 through 8 -6

Be sure that your numbers fit in the space provided. I have mine bigger so that you can see them easier. 5945. 25 757. -2394. -9395. 50 ---- 7596. 48 NET INCOME 813. 50 2393. 40 12227. 50 850. -- ---- 945. -603. 45 1800. -340. 68 3689. 13 7596. 48 19341. 75 15434. 40 3907. 35 7596. 48 19341. 75

NET LOSS 3204. 10 2927. 40 276. 70 3204. 10 9159. 90 276. 70 9436. 60

Section 2 Extending Amounts Across the Work Sheet (con’t. ) Check Your Understanding p 194 Thinking Critically 1 & 2 Computing in the Business World Problem 8 -3