In preparing a worksheet, the following steps must be followed: First of all, the names of all ledger accounts with balances are written in the first column and their balances in their respective debit and credit columns of the trial balance. The trial balance columns are then totaled. The necessary adjusting entries are posted in the adjustment columns. The title of any account that is debited or credited in the adjusting entries but not listed in the trial balance is recorded from the next line of the trial balance total. The adjustments columns are totaled, after which the total of the debit column should be equal to the total of the credit column. The resulting balance is obtained from the trial balance, and the adjustment columns are as follows: The resulting balance is recorded in the adjusting trial balance columns. The adjusting trial balance columns are totaled to demonstrate that no arithmetic errors have been made. The expenses from the adjusted trial balance columns are recorded in the debit column of the income statement, and income is recorded in the credit column. If the total of the credit column (income) is greater than the debit column (expense), this represents net income. The net income is recorded in the debit column to equalize the debit and credit columns of the income statement. If the total of the debit column (expense) is greater than the credit column, it represents a net loss. The net loss is recorded in the credit column to equalize the debit and credit columns. The balances of assets from the adjusting trial balance are transferred to the debit column of the balance sheet, and the balance of liabilities is transferred to the credit column. The net income is shown as a liability (credit column) and the net loss as an asset (debit column).Post Balances in Trial Balance Columns
Post Adjusting Entries in Adjustment Columns
Enter Balances in Adjusting Trial Balance Column
Complete Income Statement Columns
Determine Net Loss or Net Income
Complete Balance Sheet Columns
Steps in Preparing a Worksheet FAQs
In preparing a worksheet, the following steps must be followed: post balances in trial balance columns, post adjusting entries in adjustment columns, enter balances in adjusting trial balance columns, complete income statement columns, determine net loss or net income, and complete balance sheet columns.
A worksheet is used as a tool in financial accounting to assist in the preparation of financial statements. It allows accountants to see a summary of all transactions that have occurred within an accounting period without having to reference individual ledger accounts.
One of the most important steps in preparing a worksheet is ensuring that all the information included is accurate and up-to-date. You can do this by double-checking all the data before you print out your worksheet, or by incorporating automatic updates into your worksheet design.
There is no definitive answer to this question - it will depend on the specific worksheet and its intended purpose. However, it is important to make sure that the format of your worksheet is clear and easy to understand, as this will make much simpler for users to use it correctly.
This will depend on the specific worksheet and its intended purpose. However, there are some key pieces of information that are often included on worksheets, such as headings, labels, and data grids.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
