Worksheet Preparation

H0032

* Property of STI

Page 1 of 8

WORKSHEET PREPARATION

Types of Adjusting Entries:

Adjusting Entries

1. Entries to apportion recorded costs

2. Entries to apportion unearned

revenue

3. Entries to record unrecorded

expenses

4. Entries to record unrecorded revenue

Worksheet Preparation

H0032

* Property of STI

Page 2 of 8

Apportioning Recorded Costs

o Insurance

Prepaid Expenses

o Office Supplies

Unexpired Insurance xxx

Cash xxx

Insurance Expense xxx

Unexpired Insurance xxx

Office Supplies xxx

Cash xxx

Office Supplies Expense xxx

Office Supplies xxx

o Depreciation of Building/Office Equipment

Depreciation Expense xxx

Accumulated Depreciation xxx

Worksheet Preparation

H0032

* Property of STI

Page 3 of 8

Apportioning Unearned Revenue

Cash xxx

Unearned Management Fees xxx

Unearned Management Fees xxx

Management Fees Earned xxx

Worksheet Preparation

H0032

* Property of STI

Page 4 of 8

Recording Unrecorded Expenses

Accrual of Interest

Cash xxx

Notes Payable xxx

Interest Expense xxx

Interest Payable xxx

Salaries Expense xxx

Salaries Payable xxx

Salaries Payable xxx

Salaries Expense xxx

Cash xxx

Accrual of Salary

Worksheet Preparation

H0032

* Property of STI

Page 5 of 8

Recording Unrecorded Revenue

Management Fees Receivable xxx

Management Fees Earned xxx

Cash xxx

Management Fees Receivable xxx

Management Fees Earned xxx

Worksheet Preparation

H0032

* Property of STI

Page 6 of 8

The Worksheet

Parts of the Worksheet

o Heading

o Body of the worksheet

1. The name of the business

2. The title “Worksheet”

3. Period of time covered

Procedures in Preparing a Worksheet

1. Enter the ledger account balances in the trial

balance column.

2. Enter the adjustments in the Adjustment

column.

3. Enter the account balances as adjusted in the

Adjusted Trial Balance columns.

4. Extend each amount in the Adjusted Trial

Balance columns into the Income Statement

or Balance Sheet columns.

5. Total the Income Statement and Balance

Sheet columns.

Worksheet Preparation

H0032

* Property of STI

Page 7 of 8

Use of Worksheet

1. Preparing financial statements

2. Recording adjusting entries in the Accounting

Records

3. Recording closing entries

a. Debit the Revenue accounts and credit

Income Summary.

b. Debit Income Summary and credit

Expense accounts.

c. Transfer the balancing figure in the

Income Statement columns.

d. Debit the Capital account and credit

the Drawing account.

Worksheet Preparation

H0032

* Property of STI

Page 8 of 8

The Accounting Cycle

Transactions are analyzed & recorded in the journal

Adjusting entries are journalized & posted to the ledger

A post-closing trial balance is prepared

Transactions are posted to the ledger

A trial balance is prepared, adjustment data are

Assembled & an optional worksheet is completed.

Financial statements are prepared

Closing entries are journalized & posted to the ledger