Section 2Extending Amounts Across the Work Sheet What You’ll Learn How to extend amounts to the...

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Section 2 Extending Amounts Across the Work Sheet What You’ll Learn How to extend amounts to the Balance Sheet and Income Statement sections. The importance of the matching principle. How to calculate and show the net income or net loss on the work sheet.

Transcript of Section 2Extending Amounts Across the Work Sheet What You’ll Learn How to extend amounts to the...

Page 1: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

Section 2Extending Amounts Across the Work Sheet

Section 2Extending Amounts Across the Work SheetWhat You’ll Learn

How to extend amounts to the Balance Sheet and Income Statement sections.

The importance of the matching principle.

How to calculate and show the net income or net loss on the work sheet.

What You’ll Learn

How to extend amounts to the Balance Sheet and Income Statement sections.

The importance of the matching principle.

How to calculate and show the net income or net loss on the work sheet.

Page 2: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

Why It’s Important

Preparing the work sheet helps you

understand the relationship of all

ledger accounts and where they are

reported.

Why It’s Important

Preparing the work sheet helps you

understand the relationship of all

ledger accounts and where they are

reported.

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Key Terms

matching principle

net income

net loss

Key Terms

matching principle

net income

net loss

Page 3: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

The Balance Sheet SectionThe Balance Sheet Section

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Page 4: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

The Income Statement SectionThe Income Statement Section

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Page 5: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

Totaling the Income Statement and Balance Sheet SectionsTotaling the Income Statement and Balance Sheet Sections

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Page 6: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

Showing Net Income on the Work SheetShowing Net Income on the Work Sheet

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Page 7: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

Completing the Work SheetCompleting the Work Sheet

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Page 8: Section 2Extending Amounts Across the Work Sheet What You’ll Learn  How to extend amounts to the Balance Sheet and Income Statement sections.  The importance.

Check Your UnderstandingCheck Your Understanding

What is the effect of net

income on the capital account?

What is the effect of net

income on the capital account?

Section 2 Extending Amounts Across the Work Sheet (con’t.)

Section 2 Extending Amounts Across the Work Sheet (con’t.)