Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of...
-
Upload
eileen-robinson -
Category
Documents
-
view
234 -
download
2
Transcript of Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of...
![Page 1: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/1.jpg)
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”
![Page 2: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/2.jpg)
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!!!
![Page 3: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/3.jpg)
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!
![Page 4: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/4.jpg)
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
![Page 5: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/5.jpg)
Chapter 8.1
The Six-Column Work Sheet
• Step 2: Enter, total, and rule the trial balance
![Page 6: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/6.jpg)
Chapter 8.1
The Six-Column Work Sheet
• Step 3: Copy the balance sheet amounts to the balance sheet columns
![Page 7: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/7.jpg)
Chapter 8.1
The Six-Column Work Sheet
• Step 4: Copy the income statement amounts to the income stmt. columns
![Page 8: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/8.jpg)
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)
![Page 9: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/9.jpg)
Chapter 8.1
The Six-Column Work Sheet
• Step 6: Record the net income in the outer two of the last four columns
![Page 10: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/10.jpg)
Chapter 8.1
The Six-Column Work Sheet
• Step 7: Total and rule the work sheet
![Page 11: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/11.jpg)
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.
![Page 12: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/12.jpg)
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
![Page 13: Chapter 8.1 The Six-Column Work Sheet Introducing the Worksheet What is it? -A large sheet of accounting paper used to organize data in the preparation.](https://reader035.fdocuments.net/reader035/viewer/2022081506/56649dba5503460f94aaaf34/html5/thumbnails/13.jpg)
Chapter 8.1
The Six-Column Work Sheet
• Rule and total the work sheet for a loss situation