The Worksheet
Unit 9
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The Accounting Cycle
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The Worksheet
•The worksheet is a device that
organizes the accounting data
required for the preparation of
financial statements.
•It is not a permanent accounting
document so it may be, and often is,
completed in pencil.
•It has SIX columns: two for the trial
balance, two for the income
statement and two for balance
statement.
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The Six Column Worksheet
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Write the heading
Record the trial balance
Transfer the balance sheet items
Transfer the income statement items
Complete the income statement section
Complete the balance sheet section
Rule the worksheet
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Step 1: Write the heading
• The main heading showing the regular Who? What?
When? across the top of the worksheet. Notice that the
date line indicates the length of time covered by the
accounting period.
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Step 2: Record the trial balance
• Record the titles and
balances from all of the
general ledger accounts
on the work sheet.
• Add the debit column
balances and the credit
column balances.
• The debit and credit
columns should show the
same totals.
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Step 3:
Transfer the balance sheet items
• The first accounts on the trial balance relate to assets,
liabilities and owner’s equity.
• The amounts are transferred to the balance sheet section of
the work sheet.
• For example, the cash debit of $7800 is extended to the
debit column of the balance sheet section since cash is an
asset.
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Step 2:
Transfer the Income Statement items
• The revenue and expense accounts on the trial balance are
transferred next.
• For example, Member’s Fees is a revenue account with a
credit balance of $12 530.
• This amount is transferred to the credit column of the
income statement section.
• The remaining revenue accounts are transferred as well.
• The expense accounts have debit balances and are
transferred to the debit column.
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Step 5: Complete the income
statement section
• Determine net income or net loss
• Rule a SINGLE line below debit and credit columns and
ADD each column
• Write the totals below the single line.
• Determine the difference between the two columns.
• Write the difference on the smaller side.
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Step 6: Complete the
balance sheet section
• Rule a single line on the balance sheet section.
• Enter the net income amount below the total of
the credit column of the balance sheet section.
• Net loss would be recorded below the debit
column of the balance sheet section.
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Step 7: Rule the worksheet
• Rule double lines below the totals to
indicate completion and proof that the
work is mathematically correct.
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