This document provides instructions for completing a 6-column worksheet, which is used to organize financial data and prepare financial statements. It explains that the 6 columns are for trial balance debits, trial balance credits, income statement debits, income statement credits, balance sheet debits, and balance sheet credits. The steps are to complete the heading, enter the trial balance, copy balance sheet and income statement accounts to the appropriate columns, total the columns, record the net income/loss, and total the worksheet. In a net loss situation, the loss amount is recorded in the inner income statement columns.

1. BAF3M Accounting
Unit 4, Activity 1
“The 6-Column Work Sheet”

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