Definition of an Accounting Worksheet
An accounting worksheet is a ledger sheet that lists all the balances of each account a business has on a certain date. An accounting worksheet is done at the end of an accounting period, and it is used to make adjustments to accounting entries, to close entries and finally to prepare financial statements.
Other People Are Reading
-
Unadjusted Trial Balance
-
When a company's accounting period ends, a worksheet is produced. This is done on a 10-column ledger sheet, and each account is listed individually on the left-hand side. The first two columns of numbers list each account's balance. Some will be debits, placed on the left, and some will be credits, placed on the right. The order in which the accounts are listed are: assets, liabilities, equity, revenue and expenses. Each column is totaled and the amounts are listed on the very bottom. The debit and credit columns should balance out by being the same number.
Adjustments
-
The next two columns of numbers represent the debits and credits for adjusting entries. Adjusting entries are made to adjust certain accounts and bring them up to date. Adjusting entries include things such as inventory, supplies, insurance, depreciation, interest expenses and interest incomes. An example of an adjusting entry would be if the Supplies account was listed as $300, but when an actual count showed there is only $250 of supplies, an entry would be made to make up this difference. A $50 debit would be placed under Supplies Expense and a $50 credit would be placed under Supplies. The adjustment columns are totaled and balanced out. The amounts should equal.
-
Trial Balance
-
After the adjustments are made, all of the account balances are updated. The new totals are put in the next two columns of the ledger. If no adjustment was made to an account, the account balance simply transfers over. If an adjustment was made to an account, the new balance transfers over. When the trial balance is complete and balanced, the amounts are placed in either of the next two columns depending on what they are.
Income Statement
-
The next two columns represent accounts that are represented on the Income Statement. An Income Statement is a financial document that shows all revenues and all expenses. Any revenue and expense accounts are to be placed on these columns. An Income Statement is generated based on this information, and this statement shows the company's net income or net loss for the period.
Balance Sheet
-
The remaining account balances are to be transferred to the last two columns, which are balance sheet accounts. All asset, liability, and equity accounts are to be placed in these two columns. A Balance Sheet is then generated that shows the company's assets, liabilities and equity for that date.
-
References
- Photo Credit stationary image by pix29 from Fotolia.com
