century 21 accounting © thomson/south-western lesson 6-1 creating a worksheet
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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 6-1LESSON 6-1
Creating a Worksheet
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
PREPARING THE HEADING OF A PREPARING THE HEADING OF A WORK SHEETWORK SHEET page 153
Name of CompanyName of Company
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Name of ReportName of Report
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Date of ReportDate of Report
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
1. Write the general ledger account titles.
2. Write the general ledger debit account balances. Write the general ledger credit account balances.
4. Add both the Trial Balance Debit and Credit columns.
3. Rule a single line across the two Trial Balance columns.
5. Write each column’s total below the single line.
6. Rule double lines across both Trial Balance columns.
PREPARING A TRIAL BALANCE ON A PREPARING A TRIAL BALANCE ON A WORK SHEETWORK SHEET page 154
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
TERMS REVIEWTERMS REVIEW
fiscal period work sheet trial balance
page 155
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 6-2LESSON 6-2
Planning Adjusting Entries on a Work Sheet
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
SUPPLIES ADJUSTMENT ON A SUPPLIES ADJUSTMENT ON A WORK SHEETWORK SHEET
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page 158
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1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
PREPAID INSURANCE ADJUSTMENT PREPAID INSURANCE ADJUSTMENT ON A WORK SHEETON A WORK SHEET page 159
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1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
PROVING THE ADJUSTMENTS COLUMNS PROVING THE ADJUSTMENTS COLUMNS OF A WORK SHEETOF A WORK SHEET page 160
3. Rule double lines.
2. Add both the Adjustments Debit and Credit columns. Write each column’s total.
1. Rule a single line.
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
PREPARING A WORK SHEETPREPARING 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.
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
(b) 10000
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(b) 10000
(a) 71500
(a) 71500
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4964001000015000
11000
10000102500120000
200005000
50000062500
35650021300
280030000
881500 881500 81500 81500 146600 356500 734900 525000
356500 734900
49640010000150001000031000
11000020000
5000500000
62500
66
11000
21300
280030000
356500
10000
71500
77
209900 209900Net Income 8899
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356500 734900
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
TERM REVIEWTERM REVIEW
adjustments
page 161
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 6-3LESSON 6-3
Extending Financial Statement Information on a Work Sheet
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
EXTENDING BALANCE SHEET ACCOUNT EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEETBALANCES ON A WORK SHEET page 162
1. Debit balances without adjustments
2. Debit balances with adjustments
3. Credit balances without adjustments
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
EXTENDING INCOME STATEMENT ACCOUNT EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEETBALANCES ON A WORK SHEET page 163
1. Sales balance
2. Expense balances without adjustments
3. Expense balances with adjustments
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
1. Single rule
2. Totals
3. Net income
RECORDING NET INCOME, AND RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEETTOTALING AND RULING A WORK SHEET page 164
4. Extend net income 6. Totals
66 773355
221144
5. Single rule 7. Double rule
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
CALCULATING AND RECORDING A NET CALCULATING AND RECORDING A NET LOSS ON A WORK SHEETLOSS ON A WORK SHEET page 165
2. Totals
3. Net loss
4. Extend net loss
1. Single rule 22
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
TERMS REVIEWTERMS REVIEW
balance sheet income statement net income net loss
page 166
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 6-4LESSON 6-4
Finding and Correcting Errors on the Work Sheet
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
CORRECTING AN ERROR IN POSTING TO CORRECTING AN ERROR IN POSTING TO THE WRONG ACCOUNTTHE WRONG ACCOUNT page 168
1. Draw a line through the entire incorrect entry. Recalculate the account balance and correct the work sheet.
22 Correct entryCorrect entry
11 Incorrect entryIncorrect entry
2. Record the posting in the correct account. Recalculate the account balance, and correct the work sheet.
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
CORRECTING AN INCORRECT AMOUNTCORRECTING AN INCORRECT AMOUNT
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page 169
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.
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1
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CORRECTING AN AMOUNT POSTED TO CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMNTHE WRONG COLUMN
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page 169
6. Recalculate the account balance, and correct the work sheet.5. Record the posting in the correct amount column.4. Draw a line through the incorrect item in the account.