Worksheet
- multiple column form used in preparing financial statement
- not a permanent accounting record
steps in preparing a worksheet
- prepare a trial balance on the worksheet
- enter the adjustments in the adjustments columns
- complete the adjusted trial balance columns
- extend amounts to financial statement columns
- total columns,compute net income or loss
closing the books
only temporary accounts are closed
eg. all revenue /expense/dividends accounts
post closing trial balance
- all temporary accounts will have zero balance
2. only contains balances for permanent (statement of financial position) accounts
the accounting cycle
- Analyze business transactions
- Journalize the transactions
- post to ledger accounts
- prepare a trial balance
- journalize and post adjusting entries
- prepare an adjusted trial balance
- prepare financial statements
- journalize and post closing entries
- prepare a post-closing trial balance
correcting entries
- unnecessary if accounting records are free of errors
- made whenever an error is discovered.
- must be posted before closing entries
standard classifications
assets :
Intangible assets
property,plant and equipment
long term investment
current assets
equity and liability :
Equity
Non-current liabilities
Current liabilities
Intangible assets
Goodwill
Capitalized development costs
property,plant and equipment
long use lives
currently use in operations
Depreciation
Accumulated depreciation
long term investment
investments in ordinary shares and bonds of other companies
non-current assets
current assets
inventory trade and other receviables short-term investment current tax assets receivables ( notes accounts interest) cash
Equity
retained earnings
share capital- ordinary
share premium
other reserves
Non-current liabilities
Long term debt Deferred tax liabilities Provisions Bonds payable mortgages payable long term notes payable pension liabilities
current liabilities
notes payable accounts payable unearned service earning income taxes payable trade payable current provisions
correct order of presentation in a classified statement of financial position for ca
prepaid insurance
inventories
accounts receivable
cash
