Chapter 61 WARM UPInternet Activity10Points Go to the homepage for the American Institute of Certified Public Accountants AICPA wwwaicpaorg Search the site for information about career resources for students ID: 667578
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Slide1
Worksheet for a Service Business
Chapter 6.1 Slide2
WARM UP-Internet Activity-10Points
Go to the homepage for the American Institute of Certified Public Accountants (AICPA) (
www.aicpa.org
)
Search the site for information about career resources for students
List two resources provided by the AICPA designed to help students with career choices in the field of accounting
Pick one of these two resources and examine it in more detail. List two interesting pieces of information you learned from this resource.Slide3
Objectives for Chapter 6
Chapter 6 Introduces the 8- Column work sheet.
In order to complete a work sheet, adjustments must be made.
Chapter 6 describes two simple adjustments for a proprietorship-supplies and prepaid insurance.Slide4
Objectives for Chapter 6.1
Define Accounting terms related to a work sheet for a services business organization organized as a proprietorship.
Identify accounting concepts and practices related to a work sheet for a service business organized as a proprietorship.
Prepare a heading and a trial balance on a work sheetSlide5
Consistent Reporting
Very Important!
Without consistent reporting, it would be very difficult to compare results from year to year.Slide6
Question for YOU!
Can you think of any way to test to see if debit equal credits after all posting is complete?
-If Debits equal Credits for each transaction, total debits should equal total credits. This leads to a listing of each account and its balance-a trial balance.Slide7
Terminology
fiscal period
-the
length of time for which a business summarizes and reports financial information.
work sheet
-a
columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
trial balance
-a
proof of the equality of debits and credits in a general ledger. Slide8
Explanation
Reporting accounting information for a fiscal period is very important…Why????????
A
fiscal period can begin on any date. However, most businesses begin their fiscal periods on the first day of a month.Slide9
LESSON 6-1
Creating a WorksheetSlide10
LESSON 6-1
PREPARING THE HEADING OF A
WORK
SHEET
page 153
Name of Company
1
Name of Report
2
Date of Report
3
A WORK SHEET IS A PLANNING DOCUMENTSlide11
11
LESSON 6-1
PREPARING
THE HEADING OF A
WORK
SHEET
page 153
A WORK SHEET IS A PLANNING DOCUMENT
ALL FINANCIAL STATEMENT HEADINGS ANSWER THE QUESTIONS: WHO? WHAT? AND WHEN?Slide12
PREPARING A TRIAL BALANCE ON A WORK SHEET
ALL ACCOUNTS ARE LISTED IN CHART OF ACCOUNTS ORDER ON A WORK SHEET WHETHER THEY HAVE A BALANCE OR NOT.
ACCOUNT TITLES ARE WRITTEN IN FULL UNLESS THERE IS NOT ENOUGH ROOM. IF THERE IS NOT ENOUGH ROOM, ABBREVIATIONS CAN BE USED
ACCURACY IS IMPORTANT WHEN COPYING ACCOUNT BALANCES TO THE WORK SHEET COLUMNSSlide13
13
LESSON 6-1
1. Write the general ledger account titles.
2. Write the general ledger debit account balances. Write the general ledger credit account balances.
4. Add both the Trial Balance Debit and Credit columns.
3. Rule a single line across the two Trial Balance columns.
5. Write each column’s total below the single line.
6. Rule double lines across both Trial Balance columns.
PREPARING
A TRIAL BALANCE ON A WORK SHEET
page 154
1
2
4
3
5
6Slide14
14
LESSON 6-1
TERMS REVIEW
fiscal period
-the length of time for which a business summarizes and reports financial information.
work
sheet
-a columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
trial
balance-a proof of the equality of debits and credits in a general ledger.
page 155Slide15
APLIA 6.1
Work Together and On Your Own
Application Problem
Character Counts Page
(Next slide)Slide16
Character Counts-10 Points
Access the AICPA’s Code of Professional Conduct at www.aicpa.org.
Citing the exact source for each answer, determine whether a member of the AICPA may:
Accept a gift from a client. (Hint: Search Independent Ethics Rulings)
Charge a client a fee bases on the net income reported on the audited income statement (Hint: Search Contingent Fees)
Advertise professional services in television commercials. (Hint: Search Other Professional Responsibilities and Practices, Advertising Interpretations) Slide17
EXIT TICKET
WHAT IS WRITTEN ON THE THREE-LINE HEADING ON A WORK SHEET?WHAT GENERAL LEDGER ACCOUNTS ARE LISTED IN THE TRIAL BALANCE COLUMNS ON A WORK SHEET?