Using a Worksheet#1

AN OPTIONAL STEP
 Record ACCRUALS Record
Expense Expenses/Revenues Revenue
not yet recorded

Adjusting
Dr. Expense Entry Dr. Accounts Receivable
Cr. ‘Expense’ Payable Cr. Revenue
Period End

Dr. ‘Expense’ Payable Subsequent Dr. Cash

Cr. Cash Entry Cr. Accounts Receivable

David A . A. Weatherhead 2 6/16/23 02:18 AM

 PREPAYMENTS
/DEFERRALS
Record as Record as
Expenses / Revenues
Asset Liability
paid / received
in advance

Dr. Prepaid Expense Initial Dr. Cash

Cr. Cash Entry Cr. Unearned Revenue

Adjusting
Dr. Expense Entry Dr. Unearned Revenue
Cr. Prepaid Expense Cr. Revenue
Period End

David A . A. Weatherhead 3 6/16/23 02:18 AM

 Objectives
4

Given a trial balance and related adjusting

data at the end of the accounting period,

students should be able to, give an
appreciation for the use of, and prepare a
worksheet, in standard format

David A . A. Weatherhead 6/16/23 02:18 AM

 What is a worksheet?
5

A worksheet is a multiple-column form used

in the adjustment process and in preparing
financial statements.

It is a working tool.

It is NOT a permanent accounting

record.

David A . A. Weatherhead 6/16/23 02:18 AM

 What is a worksheet?
6

Many companies computerize worksheets

using an electronic spreadsheet program
such as Excel.
The use of a worksheet is optional.
When a company chooses to use one, it:
 prepares financial statements directly from the
worksheet.
 posts the adjustments after it has prepared the
financial statements.
David A . A. Weatherhead 6/16/23 02:18 AM
 First 3 Steps in Preparing a Worksheet
7

1. Insert a trial balance on the worksheet.

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18
Supplies 18
Office Equipment 60
Acc. Depreciation – Equipment 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____
TOTALS 134 134

David A . A. Weatherhead 8 6/16/23 02:18 AM

 First 3 Steps in Preparing a Worksheet
9

1. Insert a trial balance on the worksheet.

2. Enter the adjustments in the adjustments’

columns.

David A . A. Weatherhead 6/16/23 02:18 AM

Step 2. Enter the adjustments in the adjustments
columns.
10

An analysis of the accounts shows the following.

a) The equipment depreciates at $6 per month. at

month-end $10

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18
Supplies 18
Office Equipment 60
Acc. Depreciation – Equipment 6
(a) 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____
TOTALS 134 134

Depreciation Expense (a) 6

David A . A. Weatherhead 11 6/16/23 02:18 AM

Step 2. Enter the adjustments in the adjustments
columns.
12

An analysis of the accounts shows the following.

a) The equipment depreciates at $6 per month.

b) Rent expires at a rate of $9 per month
Supplies on hand at month-end $10

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18 (b) 9
Supplies 18
Office Equipment 60
Acc. Depreciation – Equipment 6 (a) 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____
TOTALS 134 134
Depreciation Expense (a) 6

Rent Expense (b) 9

David A . A. Weatherhead 13 6/16/23 02:18 AM

Step 2. Enter the adjustments in the adjustments
columns.
14

An analysis of the accounts shows the following.

a) The equipment depreciates at $6 per month.

b) Rent expires at a rate of $9 per month
c) Salaries accrued for the month is $3lies on hand at
month-end $10

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18 (b) 9
Supplies 18
Office Equipment 60
Acc. Depreciation – Equipment 6 (a) 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____
(c) 3
TOTALS 134 134
Depreciation Expense (a) 6
Rent Expense (b) 9
Salaries Payable (c) 3

David A . A. Weatherhead 15 6/16/23 02:18 AM

Step 2. Enter the adjustments in the adjustments
columns.
16

An analysis of the accounts shows the following.

a) The equipment depreciates at $6 per month.

b) Rent expires at a rate of $9 per month
c) Salaries accrued for the month is $3
d) Supplies on hand at month-end $10

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18 (b) 9
Supplies 18
(d) 8
Office Equipment 60
Acc. Depreciation – Equipment 6 (a) 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____ (c) 3
TOTALS 134 134
Depreciation Expense (a) 6
Rent Expense (b) 9
Salaries Payable (c) 3

Supplies Expense (d) 8

David A . A. Weatherhead 17 6/16/23 02:18 AM
Step 2. (e) Foot (add down) the Adjustments
columns.
18

Total the adjustments Debit column.

Total the adjustments Credit column.

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18 (b) 9
Supplies 18 (d) 8
Office Equipment 60
Acc. Depreciation – Equipment 6 (a) 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____ (c) 3
TOTALS 134 134
Depreciation Expense (a) 6
Rent Expense (b) 9
Salaries Payable (c) 3

Supplies Expense (d) 8

____ ____
David A . A. Weatherhead
TOTALS 19 26 26 6/16/23 02:18 AM
 First 3 Steps in Preparing a Worksheet
20

1. Insert a trial balance on the worksheet.

2. Enter the adjustments in the adjustments

columns.

3. Enter the adjusted balances in the adjusted

trial balance columns.

David A . A. Weatherhead 6/16/23 02:18 AM

Step 3
21

Enter the adjusted balances in the adjusted trial

balance columns.

This is done by adding the balance as per trial

balance columns to any adjustment there may have
been.

 Where there is no adjustment the balance remains

as it was in the trial balance columns.

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10 10
Accounts Receivable 12
12
Prepaid Rent 18 (b) 9 9
Supplies 18 (d) 8
10
Office Equipment 60 60
Acc. Depreciation – Equipment 6 (a) 6
12
Accounts Payable 10
10
Common Stock 30 30
Retained Earnings 13
13
Dividends 3 3
Service Revenue 75
75
Salaries Expense 13 _____ (c) 3
16
TOTALS 134 134
Depreciation Expense (a) 6
6
Rent Expense (b) 9 9
Salaries Payable (c) 3
3
Supplies Expense (d) __8 ____
_____
8 _____
TOTALS
David A . A. Weatherhead 22 26 26 6/16/23 02:18 AM
143 143
 GROUP ACTIVITY
23

Complete the ‘adjustments’ and ‘adjusted

trial balance columns of L4_AS #4D -

Interactive Worksheet EV -LAMPERT_2020
worksheet you have been given.

David A . A. Weatherhead 6/16/23 02:18 AM

 What is a worksheet?
24

A worksheet is a multiple-column form used in

the adjustment process and in preparing financial

statements.

It is a working tool.

It is NOT a permanent accounting record.

David A . A. Weatherhead 6/16/23 02:18 AM

 What is a worksheet?
25

Many companies computerize worksheets using an

electronic spreadsheet program such as Excel.

The use of a worksheet is optional. When a

company chooses to use one, it:

 prepares financial statements directly from the worksheet.
 posts the adjustments after it has prepared the financial
statements.

David A . A. Weatherhead 6/16/23 02:18 AM

 Steps in Preparing a Worksheet
26

1. Enter the trial balance on the worksheet.

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18
Supplies 18
Office Equipment 60
Acc. Depreciation – Equipment 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____
TOTALS 134 134

David A . A. Weatherhead 27 6/16/23 02:18 AM

 Steps in Preparing a Worksheet
28

1. Prepare a trial balance on the worksheet.

2. Enter the adjustments in the adjustments

columns.

3. Enter the adjusted balances in the adjusted

trial balance columns.

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10
Accounts Receivable 12
Prepaid Rent 18 (b) 9
Supplies 18
(d) 8
Office Equipment 60
Acc. Depreciation – Equipment 6 (a) 6
Accounts Payable 10
Common Stock 30
Retained Earnings 13
Dividends 3
Service Revenue 75
Salaries Expense 13 _____
(c) 3
TOTALS 134 134
Depreciation Expense
(a) 6
Rent Expense (b) 9
Salaries Payable (c) 3
Supplies Expense
(d) 8
____ ____
TOTALS
David A . A. Weatherhead 29 26 26 6/16/23 02:18 AM
 Steps in Preparing a Worksheet
30

1. Prepare a trial balance on the worksheet.

2. Enter the adjustments in the adjustments

columns.

3. Enter the adjusted balances in the adjusted

trial balance columns.

David A . A. Weatherhead 6/16/23 02:18 AM

 Trial Balance Adjustments Adjusted TB
Account Titles Debit Credit Debit Credit Debit Credit
Cash 10 10
Accounts Receivable 12
12
Prepaid Rent 18 (b) 9 9
Supplies 18 (d) 8
10
Office Equipment 60 60
Acc. Depreciation – Equipment 6 (a) 6
12
Accounts Payable 10
10
Common Stock 30 30
Retained Earnings 13
13
Dividends 3 3
Service Revenue 75
75
Salaries Expense 13 _____ (c) 3
16
TOTALS 134 134
Depreciation Expense (a) 6
6
Rent Expense (b) 9 9
Salaries Payable (c) 3
3
Supplies Expense (d) __8 ____
_____
8 _____
TOTALS
David A . A. Weatherhead 31 26 26 6/16/23 02:18 AM
143 143
David A . A. Weatherhead 32 6/16/23 02:18 AM
 The End

David A . A. Weatherhead 33 6/16/23 02:18 AM