Worksheet Preparation

Module 7A
 The Worksheet
• Accountants often use a worksheet to help transfer data from the
unadjusted trial balance to the financial statements.
• This multi-column document provides an efficient way to
summarize the data for financial statements.
• The worksheet simplifies the adjusting and closing process.
• The worksheet is not part of the ledger or the journal, nor is it a
financial statement.
• It is a summary device used by the accountant for his
convenience.
The Worksheet
The Worksheet
 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 column and total
the amounts.
3. Compute each account’s adjusted balance by combining the
unadjustd trial balance and and the adjustment figures. Enter the
adjusted amounts in the adjusted trial balance columns.
 Preparing the Worksheet
4. Extend the asset, liability and 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 and 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 final column totals.