8/6/2019 The Worksheet

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e Worksheet

It is an accounting device used to facilitate the preparation of adjusting entries, nancial

statements, and closing entries.

e preparation of the worksheet is an optional step in the accounting cycle.e Accountant,

at his discretion, may prepare a 10-column or an 8-column worksheet.

A 10-column worksheet provides for the following ve (5) sections, with debit and credit

money columns:

1. Trial Balance

2. Adjustments

3. Adjusted Trial Balance

4. Income Statement

5. Balance Sheet

e Adjusted Trial Balance is not provided on an 8-column worksheet.

e worksheet is normally accomplished by the Accountant using a pencil, to facilitate

correction of errors.

Formal nancial statements may be already prepared based on the completed worksheet, even

if the adjusting entries are not yet journalized and posted.

e worksheet does not take the place of adjusting and closing entries. ese entries are still

prepared and posted accordingly.