Scribd
Upload
376 views3 pages

10 Column Worksheet Template

The document provides instructions for preparing a company's year-end financial statements, including a balance sheet, income statement, and statement of owner's equity. It involves 5 steps: 1) preparing an unadjusted trial balance, 2) recording adjusting entries, 3) preparing an adjusted trial balance, 4) posting revenues and expenses to the income statement, and 5) transferring account balances to the balance sheet. Net income or loss is carried forward to ensure the balance sheet balances.

Uploaded by

jepsyut
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
376 views3 pages

10 Column Worksheet Template

The document provides instructions for preparing a company's year-end financial statements, including a balance sheet, income statement, and statement of owner's equity. It involves 5 steps: 1) preparing an unadjusted trial balance, 2) recording adjusting entries, 3) preparing an adjusted trial balance, 4) posting revenues and expenses to the income statement, and 5) transferring account balances to the balance sheet. Net income or loss is carried forward to ensure the balance sheet balances.

Uploaded by

jepsyut
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 3

Company name

Worksheet
For the year Ended
Balance Sheet

Trial Balance Adjustments Adjusted Trial Balance Income Statement


No Account & Statement of Owner's Equity

Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Step 1 Undjusted tTrial balance is prepared by posting the balance of each accounts after all transaction entries (Before a

eg: Cash Accounst payable Prepaid insurance

10,000 2,000 3,000

Step 2 AdjustmentAdjusting entry is posted at year end. Adjusting entries are made for expired expenses which we prepai
which we received in advance for the service to be performed, any expenses to be payable, any revenu

eg: Prepaid insurance got balance of 3000 which was prepaid on january 1 for three years, At year end, on

Insurance expense (3000/3) 1,000


Prepaid insurance 1,000

Step 3 Adjusted trTrial balance including the adjustment amounts.

eg: Cash Accounst payable Prepaid insurance


3,000 1,000
10,000 2,000 2,000

Step 4 Income sta 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 sheAssets, 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 sho
nsaction entries (Before adjustments & closing) for period ended has been posted in each accounts

xpenses which we prepaided, depreciation expenses for plant and machinerys, earned revenue
to be payable, any revenue which has to be receivable etc.

ee years, At year end, one year expired, so we have to pass entry for that

Insurance expense
1,000

usted trial balance.

and if it is net loss, it should be carried forward to debit side of balance sheet to equal it.

You might also like