2. Rationale …
• Learning how to complete the 6 column work sheet will
help when learning the end of period procedures of
“adjusting” and “closing”
• This process uses the “8 column” work sheet – that you
will learn in U4A3
• Let’s learn the 6 column before taking on the 8 column
3. Purpose of the Work Sheet
• The work sheet is an informal accounting document used
to help organize all data in order to help produce financial
statements
4. • The 6 columns are:
• Trial Balance Debit
• Trial Balance Credit
• Income Statement Debit
• Income Statement Credit
• Balance Sheet Debit
• Balance Sheet Credit
The Six Column Worksheet
5. • Step 1: Complete the heading, including careful
description of the fiscal period
The Six Column Worksheet
6. • Step 2: Enter, total, and rule the trial
balance amounts
The Six Column Worksheet
7. • Step 3a: Copy the balance sheet amounts
to the balance sheet columns
The Six Column Worksheet
8. • Step 3b: Copy the income statement
amounts to the income stmt. columns
The Six Column Worksheet
9. Total Revenue
Total Expenses
Net Income
(the balancing
figure)
• Step 4a: Total and rule the last four
columns
The Six Column Worksheet
10. • Step 4b: Record the net income in the
outer two of the last four columns
The Six Column Worksheet
11. • Step 4c: Total and rule the work sheet
The Six Column Worksheet
12. • Things change if there is a NET LOSS situation
• The following slides show what this situation looks like
13. • Net Loss Situation: Assume Wages and
Bank Loan were $40,000 higher
Changes shown
in red. Total
Expenses are
now higher than
Total Revenue.
The Six Column Worksheet
14. • The amount of the net loss is placed in
the inner two of the last four columns
The Six Column Worksheet
15. • Rule and total the work sheet for a loss
situation
The Six Column Worksheet
16. • The work sheet and financial statements
– It’s the duty of the accounting dept to produce top notch
financial statements for owners
– The completed worksheet contains all the info needed to create
the I/S and B/S
The Six Column Work sheet
