Using Excel to Prepare
Trial Balance Worksheets
What are Trial Balance
Worksheets?
• Trial Balance Worksheets are prepared
by accountants at the end of an
accounting period.
• A Trial Balance is prepared from the
General Ledger. All accounts and their
respective balances are listed on a
worksheet.
• The Trial Balance is footed. Total Debit
Accounts must equal Total Credit
Accounts.
The Trial Balance
LUCILLE'S PHONE SERVICE
TRIAL BALANCE WORKSHEET
TRIAL BALANCE
MARCH 31, 20X3
The Trial Balance
for Lucille's Phone
Service is shown here:
Notice that:
..The accounts are
listed in general ledger
order-assets first
then liabilities, then
equities, revenues
and finally expenses.
..The debit and credit
columns are footed
and are equal.
..A double line is used
to indicate a final total.
DR
CR
CASH
7,961
ACCOUNTS RECEIVABLE
8,472
SUPPLIES
810
PREPAID RENT
1,600
EQUIPMENT
9,300
ACCUMULATED DEPR., EQUIPMENT
ACCOUNTS PAYABLE
4,347
ACCRUED WAGES PAYABLE
UNEARNED ANS. SERV REV
1,776
COMMON STOCK
10,866
RETAINED EARNINGS
1,000
DIVIDENDS
4,268
ANSWERING SERV REV
19,003
WAGE EXPENSE
3,891
REPAIR EXPENSE
690
DEPRECIATION EXPENSE
SUPPLIES EXPENSE
RENT EXPENSE
------------------------------36,992 36,992
=======
=====
The Trial Balance-A Closer Look
The Trial Balance
for Lucille's Phone
Service is shown again
for a closer look
..By using excel
the accountant
can insert a formula
which will automatically
add up a column of
numbers.
..There are many ways to
do this. Two Examples are:
1. Write out the formula
2. Use the sum sign on the
tool bar. (It looks like an
"E".) And highlight
the cells to be added.
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
CASH
ACCOUNTS RECEIVABLE
SUPPLIES
PREPAID RENT
EQUIPMENT
ACCUMULATED DEPR., EQUIPMENT
ACCOUNTS PAYABLE
ACCRUED WAGES PAYABLE
UNEARNED ANS. SERV REVENUE
COMMON STOCK
RETAINED EARNINGS
DIVIDENDS
ANSWERING SERV REV
WAGE EXPENSE
REPAIR EXPENSE
DEPRECIATION EXPENSE
SUPPLIES EXPENSE
RENT EXPENSE
Rows
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Column G
DR
7,961
8,472
810
1,600
9,300
Column H
CR
4,347
1,776
10,866
1,000
4,268
19,003
3,891
690
--------------------------------------------------------------------=SUM(G5:G23) =SUM(H5:H23)
===============================
=============
The Trial Balance –
An Even Closer Look
The Trial Balance
for Lucille's Phone
Service is shown again
for an even closer look
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
Rows
2
3
4
Column G
Column H
DR
CR
CASH
5
7,961
ACCOUNTS RECEIVABLE
6
8,472
The formula in the first
SUPPLIES
7
810
column is: =SUM(G5:G23)
PREPAID RENT
8
1,600
(To work it must be exact.)
EQUIPMENT
9
9,300
ACCUMULATED DEPR., EQUIPMENT
10
All excel formulas begin
ACCOUNTS PAYABLE
11
with an "=" sign.
ACCRUED WAGES PAYABLE
12
UNEARNED ANS. SERV REVENUE
To add a column of
COMMON STOCK
numbers use "SUM";
RETAINED EARNINGS
Use "(" then the first
DIVIDENDS
cell in the group --ie. "G5"; ANSWERING SERV REV
then ":"; then the last
WAGE EXPENSE
cell in the group --ie. "G23". REPAIR EXPENSE
DEPRECIATION EXPENSE
Highlighting the cells
SUPPLIES EXPENSE
G5,G6,G7,G8,G9 etc. to G23 RENT EXPENSE
will work just as well.
13
14
15
16
17
18
19
20
21
22
23
4,347
1,776
10,866
1,000
4,268
19,003
3,891
690
--------------------------------------------------------------------=SUM(G5:G23) =SUM(H5:H23)
==============================
=============
Why Do Accountants Prepare
Trial Balance Worksheets?
Trial Balance Worksheets allow
accountants to adjust general ledger
balances for economic events that
have occurred but are not yet
reflected in the books and records.
What kind of events require
adjustments?
• Allocations
• Accruals
• Corrections
What accounts require allocation
adjustments?
• Prepaid Expenses,
• Unearned Revenues,
[Assets] that have
[Liabilities] arising
been used up or
from customer
expired, require
deposits and
adjustment to reflect
advances, that have
actual end of
been earned also
accounting period
require adjustment to
balances:
reflect actual end of
accounting period
– Prepaid Rent
balances:
– Prepaid Insurance
– Unearned Fees
– Supplies
– Unearned
– Accumulated
Subscriptions
Depreciation
What Accounts Require
Accruals?
• Revenue that has been
earned but has not yet
been recorded at the end
of an accounting period
must be adjusted for
accruals:
– Accrued Receivables
– Interest Receivable
– Accounts Receivable
• Expenses that have been
incurred but not yet
recorded at the end of an
accounting period must
be adjusted for accruals:
– Accrued Payables
– Wages Payable
– Utilities Payable
– Accounts Payable
Adjusting Entries-Examples
Lucille’s Phone Service is preparing adjusting entries for the period
ended March 31, 20X3 for the following economic events.
a. The remaining supplies not yet used are counted and found to
be equal to $260.
b. On January 1, 20X3, Lucille paid 4 months rent ($1,600). An
adjustment needs to be made to record the expired portion of rent
which covered January, February, and March.
c. Depreciation for the period is $110.
d. $300 of Unearned Answering Service Revenue has been earned
by March 31, 20X3.
e. Wages of $200 due to employees on March 31, 20X3 will not be
paid until April 3, 20X3.
Adjusting Entries
• Adjusting entries are recorded in the General
Journal.
• The Accountant Posts the adjusting entries to a
Trial Balance Worksheet.
• The Worksheet is used to determine the ending
balances for the period before the adjustments
are actually posted to the general ledger.
• Financial statements can be prepared from the
Worksheet.
Adjusting Entries-A Closer Look
Journal Entries need to be prepared in good form before the Trial
Balance can be adjusted
LUCILLE'S PHONE SERVICE
A djusting Journal Entries
March 31, 20X3
a SUPPLIES EXPENSE
SUPPLIES
550
550
OFFICE SUPPLIES OF $810 NEED TO BE ADJUSTED TO REFLECT THE
ACTUAL AMOUNT OF OFFICE SUPPLIES REMAINING OF $260.
b RENT EXPENSE
PREPA ID RENT
1,200
1,200
JANUARY, FEBRUARY AND MARCH REPRESENT 3 MONTHS OF $400 MONTHLY
RENTAL THAT HAS EXPIRED. ONLY THE APRIL DEPOSIT OF $400 REMAINS.
c DEPRECIA TION EXPENSE
110
A CCUMULA TED DEPRECIA TION
110
TO RECORD DEPRECIATION FOR THE PERIOD.
d UNEA RNED A NS SERV REVENUE
300
A NSWERING SERVICE REVENUE
300
TO RECORD EARNED INCOME.
e WA GES EXPENSE
200
A CCRUED WA GES PA YA BLE
TO RECORD WAGE EXPENSE INCURRED BUT NOT YET PAID
200
The Trial Balance Worksheet
Using Excel to prepare a Trial
Balance Worksheet can
reduce errors and duplication
of effort.
The Trial Balance Worksheet
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
CASH
ACCOUNTS RECEIVABLE
SUPPLIES
PREPAID RENT
EQUIPMENT
ACCUMULATED DEPR. EQUIPMT
ACCOUNTS PAYABLE
ACCRUED WAGES PAYABLE
UNEARNED ANS. SERV REV
COMMON STOCK
RETAINED EARNINGS
DIVIDENDS
ANSWERING SERV REV
WAGE EXPENSE
REPAIR EXPENSE
DEPRECIATION EXPENSE
SUPPLIES EXPENSE
RENT EXPENSE
TRIAL BALANCE
DR
CR
7,961
8,472
810
1,600
9,300
ADJUSTMENTS
REF DR
CR
ADJUSTED
TRIAL BALANCE BALANCESHEET
DR
CR
DR
CR
INCOME
STATEMENT
DR
CR
4,347
1,776
10,866
1,000
4,268
19,003
3,891
690
--------------------------- --------------------------------------------------------------------------------------------------------36,992 36,992
===== =====
========================================
The Trial Balance Worksheet-A Closer
Look
LUCILLE'S PHONE SERVICE
TRIAL BALANCE WORKSHEET TRIAL BALANCE
MARCH 31, 20X3
DR
ADJUSTED
ADJUSTMENTS TRIAL BALANCE
CR REF DR
CR
DR
CR
BALANCE
INCOME
SHEET
STATEMENT
DR CR DR CR
The Trial Balance Worksheet is labeled with:
- Name of Company
- Date
- Columns for the Trial Balance Accounts
- A Reference Column (REF) for Labeling the Adjustments
- Columns for posting Adjustments
- Columns for the Adjusted Trial Balance Totals
- Columns for Balance Sheet Accounts
- Columns for Income Statement Accounts
Trial Balance Worksheet-An Even
Closer Look
TRIAL BALANCE
DR
ADJUSTED
ADJUSTMENTS TRIAL BALANCE
CR REF DR
CR
DR
CR
BALANCE
INCOME
SHEET
STATEMENT
DR CR DR CR
Columns in an Excel Worksheet must be formatted:
-Columns need to be adjusted for “Width”.
-Cells need to be adjusted for
numerical content.
-Formulas may need to be entered.
Trial Balance WorksheetFormatting Columns
Formatting column width requires moving to a
column clicking “Format” then “Column” then
“Width” and inserting a number that will allow a
column to be wide enough to accommodate the
numerical information. A column that is too small
will not be able to show a number and will show
“####” instead. Sometimes experimentation is the
best way to find the right width.
A column’s width can be determined by going to it
and clicking “Format” then “Column” then
“Width” and seeing what number is already
inserted.
Trial Balance WorksheetFormatting Cells
Formatting cells requires going to the
individual cell or highlighting a group
of cells clicking “format” then “cells”
then choosing an option from the
menu.
(This is a good time to experiment.)
Trial Balance WorksheetFormatting Cells
Click:
•
“Format”
•
“Cells”
•
“Number”……Choose “Number”
•
Choose “(1,234)” (This option will
show negative numbers in brackets.)
•
Remember to assign the number of
decimal places. (Use zero today.)
•
Remember to check the box that says:
“Use 1000 Separator (,)”. (This will separate
thousands with commas- for example 1000
becomes 1,000.)
Posting Adjustments
Now its time to post the adjustments to
Lucille’s Phone Service
LUCILLE'S PHONE SERVICE
Adjusting Journal Entries
March 31, 20X3
a SUPPLIES EXPENSE
SUPPLIES
550
550
OFFICE SUPPLIES OF $810 NEED TO BE ADJUSTED TO REFLECT THE
ACTUAL AMOUNT OF OFFICE SUPPLIES REMAINING OF $260.
b RENT EXPENSE
PREPAID RENT
1,200
1,200
JANUARY, FEBRUARY AND MARCH REPRESENT 3 MONTHS OF $400 MONTHLY
RENTAL THAT HAS EXPIRED. ONLY THE APRIL DEPOSIT OF $400 REMAINS.
Posting the Adjustments
Before posting the
journal entries
make sure that the
"Total" columns are
properly formulated with
"=SUM(first cell:last cell)"
formula. (Try copying
the formula from one cell
to another rather than
writing the formula
over and over.)
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
TRIAL BALANCE
ADJUSTMENTS
DR
CR
REF
DR
CR
CASH
7,961
ACCOUNTS RECEIVABLE
8,472
SUPPLIES
810
a
550
PREPAID RENT
1,600
b
1,200
EQUIPMENT
9,300
ACCUMULATED DEPR. EQUIPMT
ACCOUNTS PAYABLE
4,347
ACCRUED WAGES PAYABLE
UNEARNED ANS. SERV REV
1,776
When posting adjustments COMMON STOCK
10,866
make sure that debits
RETAINED EARNINGS
1,000
and credits are posted to DIVIDENDS
4,268
to correct column and
ANSWERING SERV REV
19,003
accounts.
WAGE EXPENSE
3,891
REPAIR EXPENSE
690
Use the reference
DEPRECIATION EXPENSE
column to label the
SUPPLIES EXPENSE
a
550
adjustments.
RENT EXPENSE
b
1,200
----------------------------------------- -------------36,992 36,992
1,750
1,750
==============
======= =======
Posting Adjustments
(Continued)
Now its time to finish posting the
adjustments to Lucille’s Phone Service
c DEPRECIATION EXPENSE
110
ACCUMULATED DEPRECIATION
110
TO RECORD DEPRECIATION FOR THE PERIOD.
d UNEARNED ANS SERV REVENUE
300
ANSWERING SERVICE REVENUE
300
TO RECORD EARNED INCOME.
e WAGES EXPENSE
200
ACCRUED WAGES PAYABLE
TO RECORD WAGE EXPENSE INCURRED BUT NOT YET PAID
200
Posting the Adjustments
(Continued)
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
After the adjustments
are posted, the totals
for the debit column and
the credit column are
both equal to 2,360.
TRIAL BALANCE
ADJUSTMENTS
DR
CR
REF
DR
CR
CASH
7,961
ACCOUNTS RECEIVABLE
8,472
SUPPLIES
810
a
550
PREPAID RENT
1,600
b
1,200
EQUIPMENT
9,300
ACCUMULATED DEPR. EQUIPMT
c
110
ACCOUNTS PAYABLE
4,347
ACCRUED WAGES PAYABLE
e
200
UNEARNED ANS. SERV REV
1,776 d
300
COMMON STOCK
10,866
RETAINED EARNINGS
1,000
DIVIDENDS
4,268
ANSWERING SERV REV
19,003 d
300
WAGE EXPENSE
3,891
e
200
REPAIR EXPENSE
690
DEPRECIATION EXPENSE
c
110
SUPPLIES EXPENSE
a
550
RENT EXPENSE
b
1,200
----------------------------------------- -------------36,992 36,992
2,360
2,360
==============
======= =======
Cross Footing Columns
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
ADJUSTED
The Adjusted
TRIAL BALANCE
ADJUSTMENTS
TRIAL BALANCE
Trial Balance
DR
CR
REF DR
CR
DR
CR
Column shown in red CASH
7,961
7,961
automatically adds ACCOUNTS RECEIVABLE
8,472
8,472
the rows of numbers SUPPLIES
810
a
550
260
because each cell
PREPAID RENT
1,600
b
1,200
400
has a formula in it
EQUIPMENT
9,300
9,300
not a number.
ACCUMULATED DEPR. EQUIPMT
c
110
110
ACCOUNTS PAYABLE
4,347
4,347
ACCRUED WAGES PAYABLE
e
200
200
UNEARNED ANS. SERV REV
1,776 d
300
1,476
COMMON STOCK
10,866
10,866
RETAINED EARNINGS
1,000
1,000
DIVIDENDS
4,268
4,268
ANSWERING SERV REV
19,003 d
300
19,303
WAGE EXPENSE
3,891
e
200
4,091
REPAIR EXPENSE
690
690
DEPRECIATION EXPENSE
c
110
110
SUPPLIES EXPENSE
a
550
550
RENT EXPENSE
b
1,200
1,200
--------------------------- ----------------------------------------------------36,992 36,992
2,360
2,360 37,302 37,302
=======
======= =======
=======
=======
=======
Cross Footing ColumnsAdding Formulas
When adding the numerical
content of the cells in vertical
columns use the “=SUM” formula.
When adding the numerical
content of the cells in horizontal
rows use a formula that will add
debits and credits correctly.
Cross Footing Columns
• The Formula for An
Account that has a
Normal Debit Balance
should be:
= Debit Column +
Debit Column(s) –
Credit Column(s)
• The Formula for An
Account that has a
Normal Credit
Balance should be:
= Credit Column +
Credit Column(s) –
Debit Column(s)
Cross Footing the ColumnsA Closer Look
LUCILLE'S PHONE SERVICE
COLUMN
G
H
TRIAL BALANCE
MARCH 31, 20X3
TRIAL BALANCE
DR
CASH
7,961
ACCOUNTS RECEIVABLE
8,472
SUPPLIES
CR
I
REF
PREPAID RENT
1,600
b
EQUIPMENT
9,300
ACCUMULATED DEPR. EQUIPMT
c
4,347
ACCRUED WAGES PAYABLE
e
1,776 d
COMMON STOCK
10,866
RETAINED EARNINGS
DIVIDENDS
1,000
4,268
ANSWERING SERV REV
WAGE EXPENSE
REPAIR EXPENSE
19,003 d
3,891
e
690
DEPRECIATION EXPENSE
c
SUPPLIES EXPENSE
a
RENT EXPENSE
b
---------------------------36,992
DR
CR
L
M
ADJUSTED
TRIAL BALANCE
DR
ROW
CR
5
=G6+J6-K6
6
550 =G7+J7-K7
7
1,200 =G8+J8-K8
8
=G9+J9-K9
9
110
=H10-J10+K10 10
=H11-J11+K11 11
200
=H12-J12+K12 12
300
=H13-J13+K13 13
=H14-J14+K14 14
=H15-J15+K15 15
=G16+J16-K16
16
300
=H17-J17+K17 17
200
=G18+J18-K18
18
=G19+J19-K19
19
110
=G20+J20-K20
20
550
=G21+J21-K21
21
1,200
=G22+J22-K22
22
------------------------------------------------------------------------------ 23
2,360
2,360 =SUM(L5:L23) =SUM(M5:M23) 24
=G5+J5-K5
a
UNEARNED ANS. SERV REV
K
ADJUSTMENTS
810
ACCOUNTS PAYABLE
J
36,992
==============
===========================
= ============
Finishing the Worksheet
The Trial Balance Worksheet can be used to
prepare Financial Statements. The account
balances in the Adjusted Trial Balance must
be carried over to the appropriate columns:
Balance Sheet items (Assets, Liabilities &
Equity accounts).
Income Statement items (Income &
Expenses).
Finishing the Worksheet
(Continued)
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
TRIAL BALANCE
DR
CR REF
CASH
7,961
ACCOUNTS RECEIVABLE
8,472
SUPPLIES
810
a
PREPAID RENT
1,600
b
EQUIPMENT
9,300
ACCUMULATED DEPR. EQUIPMT
c
ACCOUNTS PAYABLE
4,347
ACCRUED WAGES PAYABLE
e
UNEARNED ANS. SERV REV
1,776 d
COMMON STOCK
10,866
RETAINED EARNINGS
1,000
DIVIDENDS
4,268
ANSWERING SERV REV
19,003 d
WAGE EXPENSE
3,891
e
REPAIR EXPENSE
690
DEPRECIATION EXPENSE
c
SUPPLIES EXPENSE
a
RENT EXPENSE
b
---------------------------36,992 36,992
==============
ADJUSTED
BALANCE
INCOME
ADJUSTMTS TRIAL BALANCE
SHEET
STATEMENT
DR
CR
DR
CR
DR
CR
DR
CR
7,961
7,961
8,472
8,472
550
260
260
1,200
400
400
9,300
9,300
110
110
110
4,347
4,347
200
200
200
300
1,476
1,476
10,866
10,866
1,000
1,000
4,268
4,268
300
19,303
19,303
200
4,091
4,091
690
690
110
110
110
550
550
550
1,200
1,200
1,200
-------------------------------------------------------------------------------------------------------------2,360 2,360 37,302 37,302
=======
=======
==============
Using Excel to Carryover Balances
• Highlight All Balance
Sheet Accounts in the
Adjusted Trial Balance
Columns
-Click “Edit”.
-Select “Copy”.
-Click on the first debit
cell under the Balance
Sheet debit column.
-Click “Edit” then
“Paste Special”
-Click on “Values” then
“OK”.
• Highlight All Income
Statement Accounts in
the Adjusted Trial
Balance Columns
-Click “Edit”.
-Select “Copy”.
-Click on the first debit
cell under the Income
Statement debit
column.
-Click “Edit” then
“Paste Special”
-Click on “Values” then
“OK”.
Finishing the WorksheetFinal Touches
The formulas for calculating the
totals of the
Balance Sheet Columns
and the
Income Statement Columns
must be entered.
Finishing the WorksheetA Closer Look
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
The formula for the
totals in the Debit and
Credit columns under
Balance Sheet and
Income Statement
is the same formula used
for the totals calculated
in the other columns:
"=SUM(first cell:last cell)"
COLUMN
N
O
BALANCE
SHEET
DR
CR
7,961
8,472
260
400
9,300
110
4,347
200
1,476
10,866
1,000
4,268
P
Q
INCOME
INCOME
STATEMENT
STATEMENT
DR
CASH
ACCOUNTS RECEIVABLE
SUPPLIES
PREPAID RENT
EQUIPMENT
ACCUMULATED DEPR. EQUIPMT
ACCOUNTS PAYABLE
ACCRUED WAGES PAYABLE
UNEARNED ANS. SERV REV
However, Debits do not
COMMON STOCK
equal Credits under the
RETAINED EARNINGS
Balance Sheet and
DIVIDENDS
Income Statement
ANSWERING SERV REV
columns. By using the
WAGE EXPENSE
4,091
the formulas "=N25-O25" REPAIR EXPENSE
690
& "=Q25-P25" respectively DEPRECIATION EXPENSE
110
the difference between
SUPPLIES EXPENSE
550
the Debit & Credit
RENT EXPENSE
1,200
Columns can be found.
------------------------- ------------------------- ------------------------=SUM(N6:N24) =SUM(O6:O24) =SUM(P6:P24)
=N25-O25
=Q25-P25
------------------------- ------------------------- ------------------------By inserting the formulas shown on this line …………
=SUM(N25:N27) =SUM(O25:O27) =SUM(P25:P27)
The worksheet becomes complete and in good form.
============= ============= =============
ROW
CR
19,303
------------------------=SUM(Q6:Q24)
------------------------=SUM(Q25:Q27)
=============
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
The Finished Worksheet
LUCILLE'S PHONE SERVICE
TRIAL BALANCE
MARCH 31, 20X3
ADJUSTED
BALANCE
INCOME
TRIAL BALANCE
ADJUSTMTS TRIAL BALANCE
SHEET
STATEMENT
DR
CR REF DR
CR
DR
CR
DR
CR
DR
CR
CASH
7,961
7,961
7,961
ACCOUNTS RECEIVABLE
8,472
8,472
8,472
SUPPLIES
810
a
550
260
260
PREPAID RENT
1,600
b
1,200
400
400
EQUIPMENT
9,300
9,300
9,300
ACCUMULATED DEPR. EQUIPMT
c
110
110
110
ACCOUNTS PAYABLE
4,347
4,347
4,347
ACCRUED WAGES PAYABLE
e
200
200
200
UNEARNED ANS. SERV REV
1,776 d
300
1,476
1,476
COMMON STOCK
10,866
10,866
10,866
RETAINED EARNINGS
1,000
1,000
1,000
DIVIDENDS
4,268
4,268
4,268
ANSWERING SERV REV
19,003 d
300
19,303
19,303
WAGE EXPENSE
3,891
e
200
4,091
4,091
REPAIR EXPENSE
690
690
690
DEPRECIATION EXPENSE
c
110
110
110
SUPPLIES EXPENSE
a
550
550
550
RENT EXPENSE
b 1,200
1,200
1,200
----------------------------------------------------------------------------------------------------------------------------------------36,992 36,992
2,360 2,360 37,302 37,302 30,661 17,999
6,641 19,303
==============
=======
=======
==============
12,662 12,662
-------------------------------------------------------30,661 30,661 19,303 19,303
============================
The Finished WorksheetBalance Sheet Columns
As can be seen from the previous
slide:
 Balance Sheet column debits do
not equal Balance Sheet column
credits.
 Debits are greater than Credits!
 The Difference is $12,662.
The Finished Worksheet –
Income Statement Columns
As can be seen from the previous
slide:
 Income Statement column debits
do not equal Income Statement
column credits.
 Credits are greater than Debits!
 The Difference is $12,662.
The Finished WorksheetDetermining Net Income
• The Income Statement
difference=$12,662.
• The Balance Sheet
difference=$12,662.
• Net Income=$12,662!
The Finished WorksheetRetained Earnings
The only calculation left to make is ending Retained Earnings
Beginning Retained Earnings
+Net Income for the Period
-Dividends
Ending Retained Earnings
COLUMN G
FORMULA
$1,000
12,662
(4,268)
$17,930
=O15
=P25
=(-N16)
=SUM(G28:G30)
The Finished Worksheet
The finished worksheet can be used to
prepare the Financial Statements:
Balance Sheet
Income Statement
Statement of Retained Earnings
Beyond the Worksheet
• Excel can be used to prepare Financial
Statements.
• Excel can be used for analysis of
Financial Statements.
• Excel can be used to prepare
schedules.
• Using Excel saves time and money.
Beyond the Worksheet
(Continued)
• The ability to use Spreadsheet Programs
like Excel is an important skill. (Not only
for accountants.)
• Excel is used by business people
everywhere.