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Preparing a Six-Column Work Sheet The ending balances in the general ledger accounts of
Chapter 8, Problem 8-4(choose chapter or problem)
Preparing a Six-Column Work Sheet
The ending balances in the general ledger accounts of Wilderness Rentals for the period ended May 31 follow.
Instructions Prepare a work sheet for the period ended May 31.
1. Write the heading on the work sheet.
2. List all of the accounts in the Account Name and Trial Balance sections. For each account, include the account number, name, and balance.
3. Total and rule the Trial Balance section. Do total debits equal total credits? If not, find and correct the problem before continuing.
4. Extend the appropriate amounts to the Balance Sheet section.
5. Extend the appropriate amounts to the Income Statement section.
6. Total the amount columns in the Income Statement and Balance Sheet sections.
7. Enter the amount of net income or net loss in the appropriate columns in the Income Statement and Balance Sheet sections.
8. Total and rule the Income Statement and Balance Sheet sections.
Questions & Answers
QUESTION:
Preparing a Six-Column Work Sheet
The ending balances in the general ledger accounts of Wilderness Rentals for the period ended May 31 follow.
Instructions Prepare a work sheet for the period ended May 31.
1. Write the heading on the work sheet.
2. List all of the accounts in the Account Name and Trial Balance sections. For each account, include the account number, name, and balance.
3. Total and rule the Trial Balance section. Do total debits equal total credits? If not, find and correct the problem before continuing.
4. Extend the appropriate amounts to the Balance Sheet section.
5. Extend the appropriate amounts to the Income Statement section.
6. Total the amount columns in the Income Statement and Balance Sheet sections.
7. Enter the amount of net income or net loss in the appropriate columns in the Income Statement and Balance Sheet sections.
8. Total and rule the Income Statement and Balance Sheet sections.
ANSWER:Problem 8.4
Preparing a Six-Column Work Sheet The ending balances in the general ledger accounts of Wilderness Rentals for the period ended May 31 follow. Debit Credit Balances 101 Cash in Bank $5,814 105 Accts. Rec. Helen Katz 717 110 Accts. Rec. Polk and Co. 590 115 Office Supplies 847 120 Office Equipment 4,360 125 Camping Equipment 6,130 201 Accts. Pay. Adventure Equipment Inc. $ 1,680 203 Accts. Pay. Digital Tech Computers 3,554 205 Accts. Pay. Greg Mollaro 635 301 Ronald Hicks, Capital 12,760 305 Ronald Hicks, Withdrawals 1,200 310 Income Summary 401 Equipment Rental Revenue 9,716 501 Advertising Expense 1,940 505 Maintenance Expense 1,083 515 Rent Expense 3,500 525 Utilities Expense 2,164 Instructions Prepare a worksheet for the period ended May 31. 1. Write the heading on the worksheet. 2. List all of the accounts in the Account Name and Trial Balance sections. For each account, include the account number, name, and balance. 3. Total and rule the Trial Balance section. Do total debits equal total credits? If not, find and correct the problem before continuing. 4. Extend the appropriate amounts to the Balance Sheet section. 5. Extend the appropriate amounts to the Income Statement section. 6. Total the amount columns in the Income Statement and Balance Sheet sections. 7. Enter the amount of net income or net loss in the appropriate columns in the Income Statement and Balance Sheet sections. 8. Total and rule the Income Statement and Balance Sheet sections.
Step by Step Solution
Step 1 of 3
A financial statement that reflects the financial position as well as financial stability of the company is known as a balance sheet. It records the resources held and the obligations of the business entity.