Chapter 8.1 The Six-Column Work Sheet The six-column work sheet prepares you for the eight-column...
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Transcript of Chapter 8.1 The Six-Column Work Sheet The six-column work sheet prepares you for the eight-column...
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
Chapter 8.1
The Six-Column Work Sheet
• Step 2: Enter, total, and rule the trial balance
Chapter 8.1
The Six-Column Work Sheet
• Step 3: Copy the balance sheet amounts to the balance sheet columns
Chapter 8.1
The Six-Column Work Sheet
• Step 4: Copy the income statement amounts to the income stmt. columns
Chapter 8.1
The Six-Column Work Sheet
• Step 5: Rule and total the last four columns
Total Revenue
Total Expenses
Net Income(the balancing figure)
Chapter 8.1
The Six-Column Work Sheet
• Step 6: Record the net income in the outer two of the last four columns
Chapter 8.1
The Six-Column Work Sheet
• Step 7: Total and rule the work sheet
Chapter 8.1
The Six-Column Work Sheet
• Net Loss Situation: Assume Wages and Bank Loan were $40,000 higher
Changes shown in red. Total Expenses are now higher than Total Revenue.
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
Chapter 8.1
The Six-Column Work Sheet
• Rule and total the work sheet for a loss situation