PURPOSE OF WORK SHEET 1. 2. 3. Tool to assist with end-of-accounting-period work Information to prepare adjusting entries and financial statements on one continuous form Format that is easily adapted to a computer spreadsheet program The Trial Balance columns have been completed using account balances from the company's ledger. Dixie Machinery Work Sheet For the Year Ended December 31, 20— ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS DEBIT DEBI T Cash 825 Accounts Receivable 300 Prepaid Insurance Office Equipment CREDI T 500 5,050 Accumulated Depr.— Office Equipment 180 Accounts Payable 250 Salaries Payable Bill McCowan, Capital Bill McCowan, Drawing 2,370 1,100 Repair Revenue 15,140 Salaries Expense 8,025 Rent Expense 1,500 Utilities Expense 640 Insurance Expense Depreciation Expense— Office Equipment 17,940 17,940 CREDIT ADJUSTED TRIAL BALANCE DEBIT CREDIT INCOME STATEMENT DEBIT CREDIT BALANCE SHEET DEBIT CRE DIT At this point, display, which shows the first three columns of the completed work sheet. Fill in these columns as follows: Total of Accounts Net Income Income Statement Debit Credit 11,290 15,140 3,850 15,140 15,140 Balance Sheet Debit Credit 7,400 3,550 3,850 7,400 7,400 1. If the totals of the Income Statement columns of a work sheet are Debit, $2,800 and Credit, $2,500, what is the net income or net loss? Answer: Net loss, $300. 2. If the totals of the Balance Sheet columns of a work sheet are Debit, $1,250 and Credit, $1,110, what is the net income or net loss? Answer: Net income, $140.