Chapter 8.1

The Six-Column Work Sheet

• The six-column work sheet prepares you for the eight-column work sheet in Chapter 9

• Step 1: Write in the heading– Indicate the fiscal period

Chapter 8.1

The Six-Column Work Sheet

• Step 2: Enter, total, and rule the trial balance

Chapter 8.1

The Six-Column Work Sheet

• Step 3: Copy the balance sheet amounts to the balance sheet columns

Chapter 8.1

The Six-Column Work Sheet

• Step 4: Copy the income statement amounts to the income stmt. columns

Chapter 8.1

The Six-Column Work Sheet

• Step 5: Rule and total the last four columns

Total Revenue

Total Expenses

Net Income(the balancing figure)

Chapter 8.1

The Six-Column Work Sheet

• Step 6: Record the net income in the outer two of the last four columns

Chapter 8.1

The Six-Column Work Sheet

• Step 7: Total and rule the work sheet

Chapter 8.1

The Six-Column Work Sheet

• Net Loss Situation: Assume Wages and Bank Loan were $40,000 higher

Changes shown in red. Total Expenses are now higher than Total Revenue.

Chapter 8.1

The Six-Column Work Sheet

• The amount of the net loss is placed in the inner two of the last four columns

Chapter 8.1

The Six-Column Work Sheet

• Rule and total the work sheet for a loss situation