Accounting Projact

8/13/2019 Accounting Projact

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If you operate a small business, creating anaccounting worksheet prior to the preparation

of financial statements can ensure that all

accounts presented in the statements are

accurate. A worksheet consists of sectionsthat list in a columnar format the companys

original trial balance, adjustments to the trial

balance, adjusted trial balance, income

statement, balance sheet and statement of

retained earnings. Each section of the

worksheet must have a debit and credit

column with balanced totals.


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Aids the

preparation of

financial

statements.

Reduces

possibility of

errors.

Links accounts

and their

adjustments.

Assists in

planning and

organizing an

audit.

Helps in

preparing

interim

financial

statements.Shows the

effects of

proposed

transactions.

Not a

reuired

report.

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The trial balance lists all the asset, liability,

revenue and epense accounts used

during the fiscal year. All accounts with adebit balance are listed under the same

debit column and all credit balance

accounts are listed under the same credit

column. The sum of all debit balances

should e!ual the sum of all credit balances


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At the end of the fiscal year, certain adjusting

journal entries are posted to certain accounts

that reflect activity for the current fiscal year.

"or eample, the years depreciation epensecan be included in this section as a debit to

depreciation epense and credit to accumulated

depreciation. Each account balance that needs

an adjustment will have a debit or credit amountlisted in this section. The sum of all debits and

credits in this section should also e!ual.


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Close Credit

Balances in

Revenue

Accounts to

Income

Summary.

"ast"orward

Adjusted Trial #alance

$ecember %&, '(&&

$ebit )redit

)ash *,%+(

Accounts receivable &,-((

upplies -,/0(

1repaid insurance ',%((

E!uipment '/,(((

Accumulated depreciation2E!uip. %0+Accounts payable /,'((

alaries payable '&(

3nearned consulting revenue ',0+(

). Taylor, )apital %(,(((

). Taylor, 4ithdrawals '((

)onsulting revenue 0,-+(

5ental revenue %(($epreciation epense2E!uipment %0+

alaries epense &,/&(

Insurance epense &((

5ent epense &,(((

upplies epense &,(+(

3tilities epense '%(

Totals *0,/-+ *0,/-+

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Close Debit

Balances in

Expense Accounts

to Income

Summary.

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"ast"orward

Adjusted Trial #alance

$ecember %&, '(&&

$ebit )redit

)ash *,%+(

Accounts receivable &,-((

upplies -,/0(

1repaid insurance ',%((

E!uipment '/,(((

Accumulated depreciation2E!uip. %0+Accounts payable /,'((

alaries payable '&(

3nearned consulting revenue ',0+(

). Taylor, )apital %(,(((

). Taylor, 4ithdrawals '((

)onsulting revenue 0,-+(

5ental revenue %(($epreciation epense2E!uipment %0+

alaries epense &,/&(

Insurance epense &((

5ent epense &,(((

upplies epense &,(+(

3tilities epense '%(

Totals *0,/-+ *0,/-+


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The income statement section contains all

revenue and epense account balances. 4hen the

debit and credit columns are added the totals

should not balance. If the credit total is higherthan the debit total, the difference is e!ual to the

net income for the fiscal year6 it is added to the

debit total to balance totals debits and credits. If

the debit total is higher, then a net loss has beenincurred and this amount is added to the credit

total for balancing purposes


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1. Trial balance or unadjusted trialbalance[2 columns - 1 debit, 1 credit]

2. Adjustments[2 columns - 1 debit, 1credit]

3. Adjusted trial balance[2 columns - 1debit, 1 credit]

4. Income Statement or Trading, Proit and!oss account[2 columns - 1 debit, 1credit]

". Statement o inancial #osition or $alance

s%eet [2 columns - 1 debit, 1 credit]


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FastForward

Wors!eet

For t!e "ont! Ended December #$% &'$$P 1


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#alance heet

The balance sheet includes all assets, liabilities

and owners capital account balances. The sum

total of the debit and credit columns should

e!ual and balance


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Documents

Accounting Projact