LESSON 6-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 6-1

Creating a Worksheet

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-1

PREPARING THE HEADING OF A WORK SHEET page 153

Name of Company

1Name of Report

2Date of Report

3

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-1

1. Write the general ledger account titles.

2. Write the general ledger debit account balances. Write the general ledger credit account balances.

4. Add both the Trial Balance Debit and Credit columns.

3. Rule a single line across the two Trial Balance columns.

5. Write each column’s total below the single line.

6. Rule double lines across both Trial Balance columns.

PREPARING A TRIAL BALANCE ON A WORK SHEET page 154

1

2

4

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-1

TERMS REVIEW

fiscal period work sheet trial balance

page 155

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 6-2

Planning Adjusting Entries on a Work Sheet

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-2

SUPPLIES ADJUSTMENT ON A WORK SHEET

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2

page 158

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1. Write the debit amount.2. Write the credit amount.3. Label the two parts of this adjustment.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-2

PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET page 159

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1. Write the debit amount.2. Write the credit amount.3. Label the two parts of this adjustment.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-2

PROVING THE ADJUSTMENTS COLUMNS OF A WORK SHEET page 160

3. Rule double lines.

2. Add both the Adjustments Debit and Credit columns. Write each column’s total.

1. Rule a single line.

1

3

2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-2

PREPARING A WORK SHEET page 160 C

1. Write the heading.2. Record the trial balance.3. Record the supplies adjustment.4. Record the prepaid insurance adjustment.5. Prove the Adjustments columns.6. Extend all balance sheet account balances.7. Extend all income statement account balances.8. Calculate and record the net income (or net loss).9. Total and rule the Income Statement and Balance Sheet

columns.

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LESSON 6-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-2

1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-2

(b) 10000

4

(b) 10000(a) 71500

(a) 71500

3

4964001000015000

11000

10000102500120000

200005000

50000062500

35650021300

280030000

881500 881500 81500 81500 146600 356500 734900 525000

356500 734900

49640010000150001000031000

11000020000

5000500000

62500

6

11000

21300

280030000

356500

10000

71500

7

209900 209900Net Income 89

12

5

356500 734900

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-2

TERM REVIEW

adjustments

page 161

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 6-3

Extending Financial Statement Information on a Work Sheet

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-3

EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET page 162

1. Debit balances without adjustments2. Debit balances with adjustments3. Credit balances without adjustments

3

2

1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-3

EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET page 163

1. Sales balance2. Expense balances without adjustments3. Expense balances with adjustments

1

3

2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-3

1. Single rule2. Totals3. Net income

RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET

4. Extend net income 6. Totals

6 73 5

214

5. Single rule 7. Double rule

page 164

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-3

CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET page 165

2. Totals3. Net loss4. Extend net loss

1. Single rule 2

1

3

4

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-3

TERMS REVIEW

balance sheet income statement net income net loss

page 166

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 6-4

Finding and Correcting Errors on the Work Sheet

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-4

CORRECTING AN ERROR IN POSTING TO THE WRONG ACCOUNT page 168

1. Draw a line through the entire incorrect entry. Recalculate the account balance and correct the work sheet.

2 Correct entry

1 Incorrect entry

2. Record the posting in the correct account. Recalculate the account balance, and correct the work sheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-4

CORRECTING AN INCORRECT AMOUNT

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3

page 169

1. Draw a line through the incorrect amount.2. Write the correct amount just above the correction in the same space.3. Recalculate the account balance, and correct the account balance on

the work sheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-4

12

3

CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMN

5 4 6

page 169

6. Recalculate the account balance, and correct the work sheet.5. Record the posting in the correct amount column.4. Draw a line through the incorrect item in the account.