Cambridge O level
Accounting
7707
Introduction to Accounting
Business Entity Concept
Business point of view
Accounting Equation
Assets
Capital/ Equity
Liabilities
Double Entry System
Dual Effect Concept
Understanding Basics of Financial StatementsAnkita6745
Understanding the basic concepts and term used in the Financial Statements.Understanding the ratios used for analyzing the Financial Statements.Discussing factors that drive corporate valuations.
Cambridge O level
Accounting
7707
Introduction to Accounting
Business Entity Concept
Business point of view
Accounting Equation
Assets
Capital/ Equity
Liabilities
Double Entry System
Dual Effect Concept
Understanding Basics of Financial StatementsAnkita6745
Understanding the basic concepts and term used in the Financial Statements.Understanding the ratios used for analyzing the Financial Statements.Discussing factors that drive corporate valuations.
An income statement is used to calculate and report two measures of profit and consists of two parts.An income statement is used to calculate and report two measures of profit and consists of two parts.
Control accounts the account which represents a particular sub ledger, sales ledger and purchases ledger control accounts.
At the end of an accounting period the accounts are balanced off and a trial balance prepared to check the accuracy of the book keeping entries. If a trial balance fails to balance this usually indicates that an error or errors may have been made and needs to be identified. As the business expands the accounting requirements increase which may lead to more errors occurring which are very difficult to find.
Get a sample on Financial statement analysis explaining how equity investors have the objectives to know the business future earning capacity, growth potential and security of their holdings. All the investors are very much interested to get higher amount of returns. Therefore, they make risk and return analysis associated with their invested funds. Lenders such as bond investors have the objectives to know the short term as well as long term solvency of the business (Bushman and Smith, 2001).
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
Control Accounts
Cambridge O Level
Cambridge IGCSE
Accounting
7110
7707
Control Accounts all the theories, past paper questions , model papers short notes
An income statement is used to calculate and report two measures of profit and consists of two parts.An income statement is used to calculate and report two measures of profit and consists of two parts.
Control accounts the account which represents a particular sub ledger, sales ledger and purchases ledger control accounts.
At the end of an accounting period the accounts are balanced off and a trial balance prepared to check the accuracy of the book keeping entries. If a trial balance fails to balance this usually indicates that an error or errors may have been made and needs to be identified. As the business expands the accounting requirements increase which may lead to more errors occurring which are very difficult to find.
Get a sample on Financial statement analysis explaining how equity investors have the objectives to know the business future earning capacity, growth potential and security of their holdings. All the investors are very much interested to get higher amount of returns. Therefore, they make risk and return analysis associated with their invested funds. Lenders such as bond investors have the objectives to know the short term as well as long term solvency of the business (Bushman and Smith, 2001).
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
Control Accounts
Cambridge O Level
Cambridge IGCSE
Accounting
7110
7707
Control Accounts all the theories, past paper questions , model papers short notes
Depreciation Accounting basic with easy examples includes
Methods of depreciation, Methods of depreciation recording, sale of asset , loss of sale of asset, profit on sale of asset, closing of asset accounting, and practical examples on depreciation methods.
Accounting Cycle - Accounting Analysis - Financial AccountingFaHaD .H. NooR
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries
Financial Workshop - Builders Profitable Marketing Oct 2015 Roshan Fernando
Great presentation for Small Business owners to understand the importance of being able to read financial statements, the difference between profit and cash flow, the power of 1 and basic ratios and percentages to keep an eye on operational performance and cash flow...
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Purpose of Assignment This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze
Financial Statement Analysis - Reading the Numbers Correctly, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
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Purpose of Assignment This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability. Two-Rivers Inc. (TRI) manufactures a variety
Ch. 16 Assignment ALLAnalysis of Oil and Gas Companies Financial .docxsleeperharwell
Ch. 16 Assignment ALLAnalysis of Oil and Gas Companies' Financial Statements- Homework#17What is the reserve replacement ratio? What is the reserve replacement ratio attempting to measure? How would you interpret it?The reserve replacement ratio measures a company's success in replacing production and accordingly measures a company's ability to continue to operate in the future. It is used to measure the performance of a company. The most basic form formula:Reserve replacement ratio=Extensions and discoveries + Improved recoveryRevisions in previous estimates + Purchases of reserves in placeProduction#13The following reserve table appeared in the financial statements of Lomax Company.Estimated Quantities of Net Proved Crude Oil and Natural Gas(Worldwide Totals only)in Thousands of Barrels and Millions of Cubic FeetYear ended Dec. 31201520162017OilGasOilGasOil GasBeginning of year171779234783335724Revisions of prevision estimates10121531(11)22Improved recovery213025231550Purchases of reserves in place001212024Sales of reserves in place(12)(12)(20)(99)(70)(24)Extension & discoveries697890426150Production(25)(104)(21)(68)(24)(76)End of year totals234783335724251870YearNet WellsGross Wells201575020102016840191020179002050i.Reserve replacement ratio=Extensions and discoveries + Improved recoveryProductionExtensions and discoveries + Improved recovery+ Revisions in previous estimatesii.Reserve replacement ratio=ProductionExtensions and discoveries + Improved recovery + Revisions in previous estimates + Purchase of reserves in placeiii.Reserve replacement ratio=Production + Sales of reserves in placeREQUIRED: Compute the following ratios for all three years:a.The reserves replacement ratio computed for all three methods and for oil and gas separately2015OilGasi.=3.6001.038ii.=4.0001.154iii.=2.7031.0342016OilGasi.=5.4760.956ii.=6.1901.412iii.=3.4630.6472017OilGasi.=0.8752.632ii.=0.4172.921iii.=0.1062.460b.The reserve life ratio computed for oil and gas separatelyReserve life ratio =Total proved reserves at beg. of year2015OilGasProduction6.847.4902016OilGas11.14311.5152017OilGas13.9589.526c.The net wells to gross wells ratioNet to gross wells =Net wells2015Gross wells0.373134328420160.44020170.439d.The average reserves per well ratio computed using BOE, i.e., combining reserves based on relative energy contentAverage reserves per well ratio=Total proved reseves @ beg2015Net wells0.401BOE/well20160.434BOE/well20170.506BOE/welle.The average daily production per well computed using BOEAverage daily production per well=Annual production/3652015Net wells0.155bbl/day/well20160.105bbl/day/well20170.112bbl/day/well#15Lomax Company reported the following expenses in its financial statements (in thousands):YearLifting CostsDD&A2015$211$50020162264502017183525REQUIRED: Using the reserve disclosure for Lomax Company given in problem 13 and the data presented in this problem:a.Compute lifting costs per BOELifting cost/BOE=Total annual lifting costs2015$ 4.984/B.
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Purpose of Assignment This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a
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Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
2. 5-2
Preparing Financial StatementsPreparing Financial Statements
Publicly owned companies – those with shares listed on a
stock exchange – have obligations to release annual and
quarterly information to their stockholders and to the public.
Publicly owned companies – those with shares listed on a
stock exchange – have obligations to release annual and
quarterly information to their stockholders and to the public.
The annual report includes comparative financial statements
and other information relating to the company’s financial
position, business operations, and future prospects.
The financial statements contained in the annual report must
be audited by a firm of certified public accountants (CPAs).
3. 5-3
JJ's Lawn Care Service
Adjusted Trial Balance
May 31, 2009
Cash 3,925$
Accounts receivable 75
Tools & equipment 2,650
Accumulated depreciation: tools &
equipment 50$
Truck 15,000
Accumumlated depreciation: truck 250
Notes payable 13,000
Accounts payable 150
Capital stock 8,000
Dividends 200
Sales revenue 750
Gasoline expense 50
Depreciation expense: tools & equipment 50
Depreciation expense: truck 250
Total 22,200$ 22,200$
Now, let’s prepare the financial statements for
JJ’s Lawn Care Service for May.
Now, let’s prepare the financial statements for
JJ’s Lawn Care Service for May.
4. 5-4
JJ's Lawn Care Service
Income Statement
For the month ending May 31, 2009
Sales revenue 750$
Operating expenses:
Gasoline expense 50$
Depreciation: tools & equipment 50
Depreciation: truck 250 350
Net income 400$
Net income also appears on the
Statement of Retained Earnings.
Net income also appears on the
Statement of Retained Earnings.
The Income StatementThe Income Statement
6. 5-6
Now, let’s prepare the Balance Sheet.
The Statement of RetainedThe Statement of Retained
EarningsEarnings
7. 5-7
JJ's Lawn Care Service
Balance Sheet
May 31, 2009
Assets
Cash 3,925$
Accounts receivable 75
Tools & equipment 2,650$
Less: Accumulated depreciation 50 2,600
Truck 15,000$
Less: Accumulated depreciation 250 14,750
Total assets 21,350$
Liabilities & Stockholders' Equity
Liabilities:
Notes payable 13,000$
Accounts payable 150
Total liabilities 13,150$
Stockholders' equity:
Capital stock 8,000$
Retained earnings 200
Total stockholders' equity 8,200
Total liabilities & stockholders' equity 21,350$
The Balance SheetThe Balance Sheet
8. 5-8
Relationships among the FinancialRelationships among the Financial
StatementsStatements
JJ's Lawn Care Service
Income Statement
For the month ending May 31, 2009
Sales revenue 750$
Operating expenses:
Gasoline expense 50$
Depreciation: tools & equipment 50
Depreciation: truck 250 350
Net income 400$
JJ's Lawn Care Service
Balance Sheet
May 31, 2009
Assets
Cash 3,925$
Accounts receivable 75
Tools & equipment 2,650$
Less: Accumulated depreciation 50 2,600
Truck 15,000$
Less: Accumulated depreciation 250 14,750
Total assets 21,350$
Liabilities & Stockholders' Equity
Liabilities:
Notes payable 13,000$
Accounts payable 150
Total liabilities 13,150$
Stockholders' equity:
Capital stock 8,000$
Retained earnings 200
Total stockholders' equity 8,200
Total liabilities & stockholders' equity 21,350$
9. 5-9
Notes to the
Financial Statements
Examples of Items Disclosed
Lawsuits pending
Scheduled plant closings
Governmental investigations
Significant events occurring
after the balance sheet date
Specific customers that
account for a large portion of
revenue
Unusual transactions and
related party transactions
Examples of Items Disclosed
Lawsuits pending
Scheduled plant closings
Governmental investigations
Significant events occurring
after the balance sheet date
Specific customers that
account for a large portion of
revenue
Unusual transactions and
related party transactions
Drafting the Notes that AccompanyDrafting the Notes that Accompany
Financial StatementsFinancial Statements
10. 5-10
Closing theTemporary AccountsClosing theTemporary Accounts
Close Revenue accounts
to Income Summary.
Close Expense accounts
to Income Summary.
Close Income Summary
account to Retained
Earnings.
Close Dividends to
Retained Earnings.
The closing process
gets the temporary
accounts ready for the
next accounting
period.
12. 5-12
Monthly
Quarterly
Jan. 1 Dec. 31
Annually
Many companies prepare financial
statements at various points throughout
the year.
Many companies prepare financial
statements at various points throughout
the year.
Interim
Financial
Statements
Preparing Financial StatementsPreparing Financial Statements
Covering Different Periods of TimeCovering Different Periods of Time
14. 5-14
Financial Analysis and DecisionFinancial Analysis and Decision
MakingMaking
Profitability
Net income percentage = Net Income/
Total Revenue
Return on Equity
ROE = Net Income/ Avg.
Stockholder’s equity
15. 5-15
Financial Analysis and DecisionFinancial Analysis and Decision
MakingMaking
Working Capital
WC = Current Assets – Current
liabilities
Current Ratio = Current Asset /
Current Liabilities
Chapter 5: The Accounting Cycle—Reporting Financial Results
Publicly owned companies – those with shares listed on a stock exchange – have obligations to release annual and quarterly information to their stockholders and to the public. These companies don’t simply prepare financial statements – they publish annual reports.
An annual report includes comparative financial statements for several years and a wealth of other information about the company’s financial position, business operations, and future prospects. Before the annual report is issued, the financial statements must be audited by a firm of certified public accounts (CPAs). Publicly owned companies must file their audited financial statements and detailed supporting schedules with the Securities and Exchange Commission.
Here is the Adjusted Trial Balance for JJ’s Lawn Care at May 31, 2009, that was completed at the end of Chapter 4. We will use the adjusted trial balance to prepare the financial statements. The first financial statement to prepare is the income statement. We prepare the income statement first because it determines the amount of net income to be reported in the statement of retained earnings.
Here is JJ’s Income Statement for the month ended May 31, 2009. JJ’s has produced net income of $400. Revenues total $750. Expenses include gasoline expense and depreciation on the company’s equipment and truck.When preparing financial statements, we always begin with the income because net income is an integral part of the statement of retained earnings. Once the income statement is completed, the statement of retained earnings can be prepared.
Remember that net income increases retained earnings. Dividends and net losses decrease retained earnings for the period.
Retained earnings is that portion of stockholders’ equity created by earning net income and retaining the related resources in the business. The statement of retained earnings summarizes the increases and decreases in retained earnings from business operations during the period.
JJ’s Lawn Care was started in May, so the beginning balance in retained earnings was zero. We add net income of $400 to the beginning balance of zero and subtract the dividends paid of $200 to arrive at the ending retained earnings balance of $200.Retained earnings at May 31st will appear on the balance sheet of JJ’s Lawn Care.
The balance sheet lists the amounts of the company’s assets, liabilities, and owners’ equity at the end of the accounting period. The balances of the asset and liability accounts are taken directly from the adjusted trial balance. The amount of retained earnings at the end of the period is taken from the statement of retained earnings we just prepared.
Note that the contra accounts, Accumulated Depreciation –Tools and Equipment and Accumulated Depreciation—Truck, reduce the balance in the related asset accounts.
Part I
This is the income statement for JJ’s Lawn Care at the end of May.
Part IINet income impacts the retained earnings of the company.Part III
The ending balance of retained earnings appears on the balance sheet. Now, it’s clear to see how all the financial statements articulate with each other.
In addition to the basic financial statements, accountants must prepare notes to the financial statements. The purpose of the notes is to explain certain items or transactions to the reader. There is no comprehensive list of all information that should be disclosed in financial statements. The adequacy of disclosure is based on a combination of official rules, tradition, and accountants’ professional judgment. Two items always disclosed in the notes to financial statements are the accounting methods in use and the due dates of major liabilities. So, for example, JJ’s Lawn Care would disclose that straight-line depreciation was used to determine depreciation expense.The notes also explain any unusual or infrequent items that may be of interest to the reader. Almost all major corporations have a note disclosure about pending litigation.
Once the financial statements have been prepared, the books are closed and it’s time to get ready for the next accounting period. Net income is earned over a period of time. At the start of a new period we want all revenue and expense accounts to have a zero balance so we can start recording income in this period.The closing of a company’s books is a four step process.Step one is to close all revenue accounts to a temporary account called Income Summary.Step two is to close all expense accounts to the Income Summary account. At this point, net income is isolated in the Income Summary.Step three is to then close Income Summary to Retained Earnings. Net income transfers from Income Summary to Retained Earnings and zeros out Income Summary. The Income Summary account never appears in the financial statements.The forth and final step is to close Dividends to Retained earnings. Net income is added to Retained Earnings and Dividends is subtracted from Retained Earnings. This updates Retained Earnings.
After preparing all the closing entries, an after-closing trial balance is prepared. Here is the after-closing trial balance for JJ’s Lawn Care Service.
The after-closing trial balance shows we have no revenues, expenses, or dividends. The proper balance of Retained Earnings appears on the after-closing trial balance.If there are any revenues, expenses, or dividends on the after-closing trial balance, an error has been made and the closing entries must be reviewed.
Almost all companies prepare annual and interim financial statements. An annual financial statement covers one year of operations. The year does not have to be a calendar year.Interim financial statements are usually prepared monthly and quarterly. Most large corporations publish quarterly reports for their shareholders.
Supplemental Topic: The Worksheet.
A worksheet illustrates in one place the relationships among the unadjusted trial balance, proposed adjusting entries, and financial statements. A worksheet is prepared at the end of the period, but before the adjusting entries are formally recorded in the accounting records.
On this slide we illustrated an abbreviated version of a worksheet. The dotted lines indicate that some accounts are not listed for illustrative purposes. To complete a worksheet follow these 5 steps.
Enter the ledger account balances in the Trial Balance columns.
Enter the adjustments in the Adjustments columns.
Prepare an adjusted trial balance.
Extend the adjusted trial balance amounts into the appropriate financial statement columns.
Total the financial statement columns and determine and record net income or net loss.