LESSON 6 1 Creating a Worksheet CENTURY 21
- Slides: 23
LESSON 6 -1 Creating a Worksheet CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2 PREPARING THE HEADING OF A WORK SHEET page 153 1 Name of Company 2 Name of Report 3 Date of Report CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -1
3 PREPARING A TRIAL BALANCE ON A WORK SHEET 2 1 4 3 5 6 page 154 1. Write the general ledger account titles. 2. Write the general ledger debit account balances. Write the general ledger credit account balances. 3. Rule a single line across the two Trial Balance columns. 4. Add both the Trial Balance Debit and Credit columns. 5. Write each column’s total below the single line. 6. Rule double lines across both Trial Balance columns. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -1
4 TERMS REVIEW page 155 n fiscal period: the length of time for which a business summarizes and reports financial information n work sheet: a columnar accounting form used to summarize the general ledger information needed to prepare financial statement n trial balance: a proof of the equality of debits and credits in a general ledger CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -1
LESSON 6 -2 Planning Adjusting Entries on a Work Sheet CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
6 SUPPLIES ADJUSTMENT ON A WORK SHEET page 158 2 3 1 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2
7 PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET page 159 2 3 1 1. Write the debit amount. 2. Write the credit amount. 3. Label the two parts of this adjustment. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2
8 PROVING THE ADJUSTMENTS COLUMNS page 160 OF A WORK SHEET 1 2 1. Rule a single line. 2. Add both the Adjustments Debit and Credit columns. Write each column’s total. 3. Rule double lines. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 6 -2
9 PREPARING A WORK SHEET page 160 C 1. Write the heading. 2. Record the trial balance. 3. Record the supplies adjustment. 4. Record the prepaid insurance adjustment. 5. Prove the Adjustments columns. 6. Extend all balance sheet account balances. 7. Extend all income statement account balances. 8. Calculate and record the net income (or net loss). 9. Total and rule the Income Statement and Balance Sheet columns. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2
10 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2
11 1 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2
12 1 2 496400 10000 15000 102500 120000 6 (a) (b) 20000 500000 71500 10000 356500 Net Income 8 11000 881500 62500 356500 21300 2800 30000 20000 500000 3 4 62500 496400 10000 15000 10000 31000 110000 (b) 10000 (a) 71500 81500 21300 10000 2800 7 30000 71500 5 11000 81500 146600 356500 734900 525000 209900 356500 734900 9 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2
13 TERM REVIEW page 161 n Adjustments: changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -2
LESSON 6 -3 Extending Financial Statement Information on a Work Sheet CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
15 EXTENDING BALANCE SHEET ACCOUNT page 162 BALANCES ON A WORK SHEET 2 1. Debit balances without adjustments 2. Debit balances with adjustments 3. Credit balances without adjustments CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 1 3 LESSON 6 -3
16 EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET page 163 1 2 3 1. Sales balance 2. Expense balances without adjustments 3. Expense balances with adjustments CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -3
17 RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET 4 1. Single rule 2. Totals 3. Net income 3 4. Extend net income 5. Single rule CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 1 7 page 164 2 5 6. Totals 7. Double rule LESSON 6 -3
18 CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET page 165 1 3 1. 2. 3. 4. Single rule Totals Net loss Extend net loss CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 2 LESSON 6 -3
19 TERMS REVIEW page 166 n balance sheet: a financial statement that reports assets, liabilities, and owner’s equity on a specific date. n income statement: a financial statement showing the revenue and expenses for a fiscal period n net income: the difference between total revenue and total expenses when the total revenue is greater n net loss: the difference between total revenue and total expenses when total expenses are greater CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -3
LESSON 6 -4 Finding and Correcting Errors on the Work Sheet CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
21 CORRECTING AN ERROR IN POSTING TO page 168 THE WRONG ACCOUNT 2 Correct entry 1 Incorrect entry 1. Draw a line through the entire incorrect entry. Recalculate the account balance and correct the work sheet. 2. Record the posting in the correct account. Recalculate the account balance, and correct the work sheet. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -4
22 CORRECTING AN INCORRECT AMOUNT page 169 2 1 3 1. Draw a line through the incorrect amount. 2. Write the correct amount just above the correction in the same space. 3. Recalculate the account balance, and correct the account balance on the work sheet. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -4
23 CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMN page 169 2 1 3 5 4 6 4. Draw a line through the incorrect item in the account. 5. Record the posting in the correct amount column. 6. Recalculate the account balance, and correct the work sheet. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6 -4
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