The Worksheet
The Accounting Cycle
Where we are:
1. Journalize (Using the General Journal) –Done
2. Post (To Ledger Accounts – which are also known as
T- Accounts) – Done
3. Trial Balance (Can enter on the Worksheet) - Done
4. Adjustments (On the worksheet)
5. Complete the Worksheet - Now
6. Financial Statements (Income Statement - then the
Balance Sheet - Done)
7. Closing Entries (Closing the Temporary Accounts –
Drawings, Revenue, Expenses)
The Worksheet
 What is the “Worksheet”?
 The Worksheet is a large sheet of accounting
paper used to organize data in the preparation
of financial statements
 On the Worksheet you will see:
 Account Numbers (which you all know now!)




The Trial Balance
The Income Statement
The Balance Sheet
And any Adjustments – we’ll do these later
The Worksheet
 Step 1 - Write the Heading
 Very similar to the Income Statement “For
the Month Ended”
 Step 2 – Trial Balance
 Record all accounts in the Trial Balance
 Step 3 – Income Statement
 Transfer Income Statement Items
 Revenue & Expenses
 Step 4 – Balance Sheet
 Transfer Balance Sheet Items
 Assets, liabilities, OE
Unit #9 – The Worksheet
 Step 5 – Net Income/Loss
 Complete the Income Statement section (Write
the difference between Revenue & Expenses –
NI (Debit)/NL (Credit)
 Step 6 = Transferring Profit
 Complete the Balance Sheet section (Transfer
the NI to the OE section of the Balance Sheet)
 Step 7 – LINES!
 Rule the Worksheet (double lines below the
totals to indicate completion)
Recording Net Income/Loss
 Once totals are added up on the
Income Statement (DR/CR)
 the difference will be put below the
lower value to balance the two sides
 If DR > CR = Net Loss
 If CR > DR = Net Income
 Will ensure that all your financial
statements balance before actually
preparing them
Unit #9 – The Worksheet
Accounts
Acc.
No.
Trial Balance
DR
CR
Adjustments
DR
CR
Income Statement
DR
CR
Balance Sheet
DR
CR
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
The Worksheet
 Page 182-184
 #6,7,9
 Practice Makes Perfect!