Scribd
Upload
24 views

Chapter 4 Accounting Principle

This document discusses how to prepare a work sheet and financial statements from a work sheet. It outlines the key steps in completing a work sheet, including entering the trial balance, adjustments, adjusted trial balance, and profit/loss and balance sheet accounts. It then explains the key financial statements that can be prepared from the work sheet: the profit and loss statement, statement of owner's equity, and balance sheet. It also briefly discusses closing entries and the closing process.

Uploaded by

Trinh Nguyễn Thảo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
24 views

Chapter 4 Accounting Principle

This document discusses how to prepare a work sheet and financial statements from a work sheet. It outlines the key steps in completing a work sheet, including entering the trial balance, adjustments, adjusted trial balance, and profit/loss and balance sheet accounts. It then explains the key financial statements that can be prepared from the work sheet: the profit and loss statement, statement of owner's equity, and balance sheet. It also briefly discusses closing entries and the closing process.

Uploaded by

Trinh Nguyễn Thảo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

10/13/2020

OBJECTIVES

COMPLETING THE
CHAPTER 4: ACCOUNTING
CYCLE

PREPARE A WORK SHEET PREPARE FINANCIAL


STATEMENTS FROM A WORK
SHEET

1 2

CONTENTS
WORK SHEETS
• Collecting and summarising data (adjusting entries and account
balances)

• Not a formal accounting record

• Prepared by using a spread-sheet program on a computer


Work sheets Steps in completing Financial
a work sheet statements
• Helpful tool in preparing financial statements

3 4

STEPS IN COMPLETING A WORK


WORK SHEETS SHEET
• 6 Columns • Step 1: Enter Trial Balance
• Step 2: Enter Adjustments (Accounts are added –
• 1st : Account title
• 2nd : Trial balance
as needed)
• 3rd : Adjustments • Step 3: Determine Adjusted Trial Balance
• 4th : Adjusted Trial balance
• Step 4: Place adjusted amount to PL or BS
• 5th :Profit and loss Statement
• 6th: Balance sheet • Step 5: Determine profit or loss (The difference
between Dr and Cr of PL)

5 6

1
10/13/2020

FINANCIAL STATEMENTS PROFIT AND LOSS


STATEMENT
• Profit and loss statement • Revenues
• Statement of Owner’s Equity
• Balance Sheet • Expenses

7 8

STATEMENT OF OWNER’S BALANCE SHEET


EQUITY
• Opening Balance of OE • Assets
• Current Assets
• Additional Investment (if any)
• Fixed Assets
• Net profit/(loss)
• Liabilities
• Withdrawals • Current Liabilities
• Closing Balance of OE • Long-term Liabilities

• Owner’s Equity

9 10

CLOSING ENTRIES
• Accounts in PL should have no balances

• Closing these balances by transferring them to Profit and


Loss Summary

• This is called the Closing Process.Transferring entries are


called Closing Entries

11

You might also like