10-column worksheet template
Company name
Worksheet
For the year Ended
Balance Sheet
Unadjusted Adjusted Income & Statement
Trial Balance Adjustments Trial Balance Statement of Owner's Equity
Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Salaries payable
Unearned Revenue
Common Stock
Dividends
Service Revenue
Rent expense
Salaries Expense
Supplies expense
Depreciation expense
Insurance expense
Total
Net income/Loss 1 2 2 1
Total
Step 1 Undjusted trial balance - Trial balance is prepared by posting the balance of each accounts after all transaction entries (Before adjustments & closing) for period ended has been posted in each accounts
eg: Cash Accounst payable Prepaid insurance
10,000 2,000 3,000
Step 2 Adjustments - Adjusting entry is posted at year end. Adjusting entries are made for expired expenses which we prepaided, depreciation expenses for plant and machinerys, earned revenue
which we received in advance for the service to be performed, any expenses to be payable, any revenue which has to be receivable etc.
eg: Prepaid insurance got balance of 3000 which was prepaid on january 1 for three years, At year end, one year expired, so we have to pass entry for that
Insurance expense (3000/3) 1,000
Prepaid insurance 1,000
Step 3 Adjusted trial balance - Trial balance including the adjustment amounts.
eg: Cash Accounst payable Prepaid insurance Insurance expense
3,000 1,000 1,000
10,000 2,000 2,000
Step 4 Income statement - Only revenue and expenses are posted in income statement column from adjusted trial balance.
1) revenue > expenses, Difference should be in debit column (i.e Net income)
2) Expenses > revenue, Difference should be in credit column (i.e Net loss)
Step 5 Balance sheet - Assets, liabilities and equity should come in balance sheet from adjusted trial balance..
To tally the balance sheet, net income should be carried forward to credit side and if it is net loss, it should be carried forward to debit side of balance sheet to equal it.
Tutorial from:
Accumulated depreciation-
Equipment
www.studentpartnersite.com