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Chapter 8 the six column work sheet
- 1. The Six-Column Work Sheet Chapter 8
- 3. Preparing the Work Sheet Section 1
- 14. Extending Amounts Across the Work Sheet Section 2
- 17. The Balance Sheet Section
- 18. The Income Statement Section
- 19. Totaling the Income Statement and Balance Sheet Sections
- 21. Completing the Work Sheet
Notas del editor
- The work sheet is a tool the accountant uses to collect all the information need for the end-of-period activities.
- Preparing the work sheet helps you understand the relationship of all ledger accounts and where they are reported.
- The balance sheet section contains the “balance sheet” accounts – assets, liability, and owners equity accounts. After the balance sheet has been proved the next step is to extend, or transfer the appropriate amounts to the balance sheet section. Simply, copy the amounts over in the appropriate debit or credit column.
- The next step is to extend the appropriate account balances to the Income Statement section. The Income statement section includes the revenue and expense accounts.
- After all the amounts in the trial balance section are extended to the Balance Sheet and Income Statement sections, each section is totaled. A single rule is drawn across the four debit and credit columns to indicated the columns are ready to be added. *** Notice the debit and credit column in each section is not equal. The two section will not be equal until the net income or net loss is added.
- To complete the Income statement and balance sheet sections: On the line under the net income amount, drwa a single rule across the four columns. D 2. in the income statement section debit column, add the net incoe amount to the previous total and enter the new total. Bring down the total of the income statement section credit amount. Total debits should equal total credits. E 3 in the balance sheet section credit column, add net income to the previous total and enter the new total. Bring down the total of the balance sheet section debit column. The total debit should equal the total credit amount. 4 in the balance sheet and income statement sections draw a double rule under the four column totals. The double rule indicates that the debit and credit columns are equal and no more amounts are to be entered in this column.