The Worksheet

Is an analytical device used to facilitate the gathering of data for adjustments, the preparation
of financial statements and closing entries.

Preparing the Worksheet

The steps in the preparation of a worksheet:

1. Enter the account balances in the unadjusted trial balance columns and total the amounts.
2. Enter the adjusting entries in the adjustments columns and total the amounts.
3. Compute each account’s adjusted balance by combining the unadjusted trial balance and the
adjustment figures. Enter the adjusted amounts in the adjusted trial balance columns.
4. Extend the asset, liability and owner’s equity amounts from the adjusted trial balance columns
to the balance sheet columns. Extend the income and expense amounts to the income
statement columns. Total the statement columns.
5. Compute profit or loss as the difference between total revenues and total expenses in the
income statement. Enter profit or loss as a balancing amount in the income statement and in
the balance sheet, and compute the financial column totals.

The heading of the worksheet states the

following:
1. Name of the business;
2. Title of the report; and
3. Date covered by the report.

ABC Co.
Worksheet
For the period ended December 31, 2019

Unadjusted Adjusted
Trial Adjustments Trial Income Balance
Accounts Balance Balance Statement Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

The The ending The The

The debits
accounts balances The adjusted adjusted adjusted
and credits
in the of the balances amounts of amounts of
of the
ledger accounts (computed by income assets,
adjusting
are listed in the combining and liabilities,
entries are
here. general amounts in expense and equity
placed
ledger are the accounts accounts
here.
listed here. unadjusted are are
trial balance extended extended
and adjusting here. here.
entries) are
placed here.