Worksheet

BBA BBA-BI Financial Accounting Financial Accounting I FIRST SEMESTER Second Semester

Worksheet: 

An accounting worksheet is a spreadsheet used to prepare accounting information and reports. Accounting worksheets are most often used in the accounting cycle process to draft an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and financial statements.

Worksheets are prepared at the end of an accounting period and usually include a list of accounts, account balances, adjustments to each account, and each account’s adjusted balance all sorted in financial statement order. As you can imagine, after a worksheet is completely filled out, preparing financial statements manually is quite simple. Most of the preparation work goes into drafting the worksheets.

As with most working papers, accounting worksheets are designed for internal purposes only. External users like investors and creditors rarely if ever get to see a company’s accounting worksheet. This means that the worksheet format can be flexible. Companies can customize the format of their worksheets to fit their internal demands and work flow needs.

Bookkeepers and accountants use accounting worksheets for a variety of reasons. Worksheets make transferring t-accounts into an adjusted trial balance much easier. Worksheets also reduce the risk of errors making errors when producing financial statements.

Worksheets can also be used for planning purposes. Since the worksheets are used to make adjusting journal entries, managers can examine the worksheets before the adjustments are posted to see their effect on the overall financial statements. Worksheets can also be helpful in preparing interim financial statements.

Example:

 

                                     Forever Green Land Scaping

                                            August 31,2012            

 

Accounting Heads Unadjusted TB Adjustment Adjusted TB Income Statement Balance Sheet
  Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 6460       6460       6460  
Accounts Receivable 23400       23400       23400  
Supplies on hand 1260     530 730       730  
Prepaid Insurance 3675     175 3500       3500  
Equipment 28800       28800       28800  
Acc. Depn Equipmnt   9200   600   9800   Foreve   9800
Buildings 72000       72000       72000  
Acc. Depn Building   16800   200   17000       17000
Accounts Payable   10500       10500       10500
Notes Payable   10000       10000       10000
Capital Stock   40000       40000       40000
Retained Earnings   42100       42100       42100
Service Revenue   14200       14200   14200    
Advertising Expenses 1200       1200   1200      
Gasoline and Oil Expenses 1775       1775   1775      
Wages and salary Expenses 4230   3320   7550   7550      
Adjustments                    
Supplies expenses     530   530   530      
Insurance expenses     175   175   175      
Depreciation exp Equipmnt     600   600   600      
Depreciation exp Buildings     200   200   200      
Rent Receivable     700   700       700  
Rent Revenue       700   700   700    
Wages and salary payable       3320   3320       3320
Interest expenses     100   100   100      
Interest Payable       100   100       100
              2770     2770
  142800 142800 5625 5625 147720 147720 14900 14900 135590 135590

 

(Visited 212 times, 1 visits today)