chapter 8.1 the six-column work sheet introducing the worksheet what is it? -a large sheet of...
Post on 24-Dec-2015
232 Views
Preview:
TRANSCRIPT
Chapter 8.1
The Six-Column Work SheetIntroducing the Worksheet
What is it?
-A large sheet of accounting paper used to organize data in the preparation of financial
statements
-Also known as an accountant’s working papers or “rough copy”
Chapter 8.1
The Six-Column Work Sheet
WHY?!?!
Just like how……- Musicians compose a rough draft;-Actors rehearse a big scene;-Directors have a rough story board;-Teachers have a rough lesson plans….
Because practice makes perfect!!!
Chapter 8.1
The Six-Column Work SheetWhy do accountants use the worksheet?
--To discover and eliminate errorsTo discover and eliminate errors
-Just like any other professional, an -Just like any other professional, an accountant prepares rough drafts to accountant prepares rough drafts to
ensure accuracyensure accuracy
-After all -After all Practice makes Perfect!Practice makes Perfect!
Chapter 8.1
The Six-Column Work Sheet
• The six-column work sheet prepares you for the eight-column work sheet in Chapter 9
• Step 1: Write in the heading– Indicate the fiscal period
Chapter 8.1
The Six-Column Work Sheet
• Step 2: Enter, total, and rule the trial balance
Chapter 8.1
The Six-Column Work Sheet
• Step 3: Copy the balance sheet amounts to the balance sheet columns
Chapter 8.1
The Six-Column Work Sheet
• Step 4: Copy the income statement amounts to the income stmt. columns
Chapter 8.1
The Six-Column Work Sheet
• Step 5: Rule and total the last four columns
Total RevenueTotal Revenue
Total ExpensesTotal Expenses
Net IncomeNet Income(the balancing(the balancing figure) figure)
Chapter 8.1
The Six-Column Work Sheet
• Step 6: Record the net income in the outer two of the last four columns
Chapter 8.1
The Six-Column Work Sheet
• Step 7: Total and rule the work sheet
Chapter 8.1
The Six-Column Work Sheet
• Net Loss Situation: Assume Wages and Bank Loan were $40,000 higher
Changes shown Changes shown in red. Total in red. Total Expenses are Expenses are now higher than now higher than Total Revenue.Total Revenue.
Chapter 8.1
The Six-Column Work Sheet
• The amount of the net loss is placed in the inner two of the last four columns
Chapter 8.1
The Six-Column Work Sheet
• Rule and total the work sheet for a loss situation
top related