Chapter 6.1
Worksheet for a Service Business
WARM UP-Internet Activity10Points
Go to the homepage for the American
Institute of Certified Public Accountants
(AICPA) (www.aicpa.org)
Search the site for information about career
resources for students
1.List two resources provided by the AICPA
designed to help students with career
choices in the field of accounting
Pick one of these two resources and
examine it in more detail. List two
interesting pieces of information you
learned from this resource.
2.
Objectives for Chapter 6
•Chapter 6 Introduces the 8Column work sheet.
•In order to complete a work
sheet, adjustments must be
made.
Chapter 6 describes two simple
adjustments for a
proprietorship-supplies and
prepaid insurance.
•
Objectives for Chapter 6.1
•Define Accounting terms related to a
work sheet for a services business
organization organized as a
proprietorship.
•Identify accounting concepts and
practices related to a work sheet for a
service business organized as a
proprietorship.
•Prepare a heading and a trial balance on
a work sheet
Consistent Reporting
Very Important!
Without consistent
reporting, it would be very
difficult to compare results
from year to year.
Question for YOU!
Can you think of any way to
test to see if debit equal credits
after all posting is complete?
-If Debits equal Credits for
each transaction, total debits
should equal total credits. This
leads to a listing of each
account and its balance-a trial
balance.
Terminology
fiscal period-the length of time for
which a business summarizes and
reports financial information.
work sheet-a columnar accounting
form used to summarize the
general ledger information
needed to prepare financial
statements.
trial balance-a proof of the equality
of debits and credits in a general
ledger.
Explanation
Reporting
accounting
information for a
fiscal period is
very
important…Why
????????
A fiscal period
can begin on any
date. However,
most businesses
begin their fiscal
periods on the
first day of a
month.
LESSON 6-1
Creating a Worksheet
PREPARING THE HEADING OF
page 153
A WORK SHEET
1
2
Name of Company
Name of Report
3
Date of Report
A WORK SHEET IS A PLANNING
DOCUMENT
PREPARING THE HEADING OF
page 153
A WORK SHEET
ALL FINANCIAL STATEMENT HEADINGS
ANSWER THE QUESTIONS: WHO?
WHAT? AND WHEN?
A WORK SHEET IS A PLANNING
DOCUMENT
11
PREPARING A TRIAL BALANCE
ON A WORK SHEET
•ALL ACCOUNTS ARE LISTED IN CHART OF
ACCOUNTS ORDER ON A WORK SHEET
WHETHER THEY HAVE A BALANCE OR NOT.
•ACCOUNT TITLES ARE WRITTEN IN FULL
UNLESS THERE IS NOT ENOUGH ROOM. IF
THERE IS NOT ENOUGH ROOM,
ABBREVIATIONS CAN BE USED
•ACCURACY IS IMPORTANT WHEN COPYING
ACCOUNT BALANCES TO THE WORK SHEET
COLUMNS
PREPARING A TRIAL BALANCE
ON A WORK SHEET
page 154
2
1
3
5
13
1. Write the general ledger
account titles.
2. Write the general ledger
debit account balances.
Write the general ledger
credit account balances.
3. Rule a single line across the
two Trial Balance columns.
4
4. Add both the Trial Balance
Debit and Credit columns.
5. Write each column’s total
below the single line.
6. Rule double lines across
both Trial Balance columns.
6
TERMS REVIEW
fiscal period-the length of timepage
for
155
which a business summarizes
and reports financial
information.
work sheet-a columnar accounting
form used to summarize the
general ledger information
needed to prepare financial
statements.
trial balance-a proof of the
equality of debits and credits in
a general ledger.
14
APLIA 6.1
 Work Together and On Your
Own
 Application Problem
 Character Counts Page (Next
slide)
Character Counts-10 Points
Access the AICPA’s Code of Professional Conduct at
www.aicpa.org.
Citing the exact source for each answer, determine
whether a member of the AICPA may:
1.Accept a gift from a client. (Hint: Search
Independent Ethics Rulings)
2.Charge a client a fee bases on the net income
reported on the audited income statement (Hint:
Search Contingent Fees)
3.Advertise professional services in television
commercials. (Hint: Search Other Professional
Responsibilities and Practices, Advertising
Interpretations)
EXIT TICKET
WHAT IS WRITTEN ON THE THREE-LINE HEADING ON
A WORK SHEET?
WHAT GENERAL LEDGER ACCOUNTS ARE LISTED IN
THE TRIAL BALANCE COLUMNS ON A WORK SHEET?