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The work sheet organizes general ledger
account information for the financial
statements. After completing the work
sheet, you will know the net income or net
loss for the accounting period.

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Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. Prepare a six-column work sheet. . Explain the purpose of the six-column work sheet. Calculate net income and net loss. Describe the parts of a six-column work sheet. All rights reserved. Inc.

1 Work Sheet Key Terms work sheet ruling Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. . Preparing the Section 8. Inc. All rights reserved.

Complete other end-of-period activities. The Sixth Step of the Accounting Cycle: The Work Sheet Preparing the Section 8. All rights reserved. Inc. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies.1 Work Sheet An accountant uses a work sheet to: Gather information to prepare financial statements. . work sheet A working paper used to collect information from the ledger accounts for use in completing end-of-period activities.

Heading Zip Delivery Service 2. All rights reserved. .1 Work Sheet 1. Account Name 3. Balance Balance Statement Sheet See page 200 Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. Income 5. Trial 4. Inc. The Work Sheet Sections Preparing the Section 8.

. All rights reserved.1 Work Sheet The Heading Zip Delivery Service Who – The name of the business What – The name of the accounting form When – The period covered by the work sheet Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. The Work Sheet Sections Preparing the Section 8. Inc.

All rights reserved. The Work Sheet Sections Preparing the Section 8. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. .1 Work Sheet Account Name Zip Delivery Service This section contains a listing of all accounts from the general ledger. Include accounts with a zero balance to avoid accidentally omitting an account. Inc.

All rights reserved. Inc. The Work Sheet Sections Preparing the Section 8. .1 Work Sheet Account Name Home See page 201 Glencoe Accounting Copyright © by The McGraw-Hill Companies.

The Work Sheet Sections Preparing the Section 8.1 Work Sheet Trial Balance Zip Delivery Service There are two steps to follow after this section is complete: Ruling the Trial Balance section Totaling the Trial Balance section See page 200 Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. Inc. . All rights reserved.

All rights reserved. The Work Sheet Sections Preparing the Section 8. .1 Work Sheet Trial Balance Zip Delivery Service Crista Vargas. Crista Vargas. Home See page 202 Glencoe Accounting Copyright © by The McGraw-Hill Companies. Inc.

a single rule (line) drawn under a column of figures indicates that the entries above the rule are to be added or Crista Vargas. . All rights reserved. If an amount is Crista Vargas. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. a total and no further processing is needed. Inc. a double rule is drawn under it.1 Work Sheet Ruling the Trial Balance Sections Zip Delivery Service ruling Drawing a line. subtracted. The Work Sheet Sections Preparing the Section 8.

Inc. Crista Vargas. . All rights reserved.1 Work Sheet Totaling the Trial Balance Section Zip Delivery Service A double line is drawn under the totals to identify the above numbers as totals. The Work Sheet Sections Preparing the Section 8. Crista Vargas. See page 202 Home Glencoe Accounting Copyright © by The McGraw-Hill Companies.

2 Work Sheet Key Terms matching principle net income net loss Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. All rights reserved. Completing the Section 8. . Inc.

Inc. All rights reserved. The Balance Sheet and Income Statement Sections Completing the Section 8. .2 Work Sheet Balance Sheet Prepared at the end Both are organized of the accounting on the work sheet period Income Statement Home Glencoe Accounting Copyright © by The McGraw-Hill Companies.

All rights reserved. The Balance Sheet and Income Statement Sections Completing the Section 8. Owner’s Asset Liability Equity Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. from the Trial Balance section for these account types. .2 Work Sheet Balance Sheet Section Amounts are transferred. or extended. Inc.

Revenue Expense Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. The Balance Sheet and Income Statement Sections Completing the Section 8. All rights reserved. Inc.2 Work Sheet Income Statement Section Amounts are extended from the Trial Balance section for these account types. .

The Balance Sheet and Income Statement Sections Completing the Section 8. All rights reserved. See page 206 Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. Inc. . Once the columns are totaled. they will not be Crista Vargas.2 Work Sheet Zip Delivery Service A single line is drawn below the entries in the Income Statement and Balance Sheet sections to indicate they are ready for totaling. equal until the net income Crista Vargas. or net loss is added.

. Showing Net Income or Net Loss on the Work Sheet Completing the Section 8.2 Work Sheet Analyzing Results Matching principles are used by managers for: Making Decisions matching principle Principle requiring that the expenses incurred in an accounting period are matched with revenue earned in the same period. All rights reserved. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. Inc.

.After the last account. skip a line and enter the words Net Income or Net Loss in the Account Name column. See page 207 Home Glencoe Accounting Copyright © by The McGraw-Hill Companies.2 Work Sheet Showing Net Income on the Work Sheet Zip Delivery Service A . All rights reserved. Inc. Showing Net Income or Net Loss on the Work Sheet Completing the Section 8.

. enter the net income total under the Income Statement Debit column. Showing Net Income or Net Loss on the Work Sheet Completing the Section 8. Inc. or the net loss under the Credit column. All rights reserved. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies.On the same line.2 Work Sheet Showing Net Income on the Work Sheet Zip Delivery Service B .

Showing Net Income or Net Loss on the Work Sheet Completing the Section 8. Inc. . enter the net income amount under the Balance Sheet Credit column.On the same line. or the net loss under the Debit column. All rights reserved.2 Work Sheet Showing Net Income on the Work Sheet Zip Delivery Service C . Home Glencoe Accounting Copyright © by The McGraw-Hill Companies.

.2 Work Sheet Showing Net Income Zip Delivery Service D . Showing Net Income or Net Loss on the Work Sheet Completing the Section 8. E . Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. Inc.Draw a single rule across the four Income Statement and Balance Sheet columns below net income.Bring down the Income Statement Debit Showing Net loss and Credit column totals (after adding net income or net loss). All rights reserved.

All rights reserved. Showing Net Income or Net Loss on the Work Sheet Completing the Section 8.Draw a double rule under the four Balance Showing Net loss Sheet and Income Statement totals.Bring down the Balance Sheet Debit and Credit column totals (after adding net income or net loss). Inc. . Total debits should equal total credits. G . Home Glencoe Accounting Copyright © by The McGraw-Hill Companies.2 Work Sheet Showing Net Income Zip Delivery Service F .

Showing a Net Income or Net Loss on the Work Sheet Completing the Section 8. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. All rights reserved. .2 Work Sheet Showing Net Loss See page 209 net loss The amount by which total expenses exceed total revenue for the accounting period. Inc.

. A Review of the Six-Column Work Sheet Completing the Section 8. 5 Balance Sheet columns. names.2 Work Sheet Total the Income Statement and 1 Enter the heading. Inc. Enter account numbers. All rights reserved. sections. balances. 7 Income Statement and Balance Sheet columns. Transfer the Trial Balance values to the 4 Income Statement and Balance Sheet 8 Total and rule the four columns. Show that Trial Balance debits and Enter the net income or net loss in the 3 credits are equal. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. and Determine the net income 2 6 or net loss.

or net loss. names. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. All rights reserved. Show that Trial Balance debits and Enter the net income or net loss in the 3 credits are equal. and Determine the net income 2 6 balances. Inc. Enter account numbers. sections. 7 Income Statement and Balance Sheet columns. . Question 1 List the steps involved in completing a six-column work sheet. Transfer the Trial Balance values to the 4 Income Statement and Balance Sheet 8 Total and rule the four columns. Total the Income Statement and 1 Enter the heading. 5 Balance Sheet columns.

All rights reserved. Home Glencoe Accounting Copyright © by The McGraw-Hill Companies. . Inc. the capital account will be out of balance by the amount of the net income. but when the revenue and expense items (temporary capital accounts) are separated from the Balance Sheet accounts. Question 2 Why are the Balance Sheet columns not equal for a business that has net income? The Trial Balance will be equal. Net income occurs when revenue exceeds expenses. Therefore. This happens because revenues increase and expenses decrease the owner’s equity account (capital). the Income Statement and Balance Sheet columns will be out of balance by the same amount.

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