work sheet for a service business. 2 23. creating a worksheet fiscal/accounting period – the...
TRANSCRIPT
Work Sheet for a Service Business
2
Fiscal/accounting period – the length of time for which a business summarizes and reports financial information
Work sheet – a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
Trial balance – a proof of the equality of debits and credits in a general ledger
3
Consistent Reporting – accounting concept when the same accounting procedures are followed in the same way in each accounting period
Accounting Period Cycle – accounting concept when changes in financial information are reported for a specific period of time
4 LESSON 6-1
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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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5 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.
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22
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55 66
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Adjustments – changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period
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Matching Expenses with Revenue – accounting concept when revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period
8 LESSON 6-2
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22
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1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.
9 LESSON 6-2
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1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment.
10 LESSON 6-2
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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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33
22
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Balance Sheet – a financial statement that reports assets, liabilities, and owner’s equity on a specific date
Income Statement – a financial statement showing the revenue and expenses for a fiscal period
Net income – when total revenue is greater than total expenses
Net loss – when total expenses is greater than total revenue
12 LESSON 6-3
page 162
1. Debit balances without adjustments
2. Debit balances with adjustments
3. Credit balances without adjustments
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22
11
13 LESSON 6-3
page 163
1. Sales balance
2. Expense balances without adjustments
3. Expense balances with adjustments
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33
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14 LESSON 6-3
1. Single rule
2. Totals
3. Net income
4. Extend net income 6. Totals
66 773355
221144
5. Single rule 7. Double rule
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15 LESSON 6-3
page 165
2. Totals
3. Net loss
4. Extend net loss
1. Single rule 22
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Work Sheet – complete in pencil and simply erase
Ledger…
17 LESSON 6-4
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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.
18 LESSON 6-4
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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.
19 LESSON 6-4
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55 44 66
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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.