About worksheet in accounting.. please help! ?

Question

1. what is the difference between a 10-column and an 8-column worksheet?

2. what are the steps in preparing a worksheet?

3. What are the advantages of preparing a worksheet?

4. By merely looking at a completed worksheet, how do you know if the firm posted a net income or incurred a net loss?

5. If you are an accountant, would you prefer a 10-column worksheet over the 8-column one? why?

6. Where would yo refer to in the worksheet if you are to record the adjusting entries in the general journal?

7. How are the accounts in ledger presented in the worksheet?

Answer 1

1. the difference between a 10-column and an 8-column worksheet is that the Adjusted Trial Balance is not shown in the 8-column worksheet.

2. First is to make a Trial Balance, then enter the Adjustments in the worksheet on the next two columns.  If you are preparing a 10-column worksheet, compute for the Adjusted Trial Balance.  If you are preparing an 8-column worksheet, then, disregard this step. Next is to prepare the Balance Sheet and then the Income Statement.

3. Dunno.  As an accountancy student, I see it as a pain in the a** cause our professors asks us to make worksheets. But then, it could serve as a guide for those who are going to prepare the formal Balance Sheet and Income Statement.

4.  Look at the Income Statement column.  If the balance is greater on the credit side, you've got a net income.  Otherwise, net loss.  If you look at the Balance Sheet column, if the balance is greater on the debit side, then , you've got a net income. Other wise, net loss.

5.  8-column worksheet.  Because it's more time consuming to prepare a 10-column worksheet.

6.  The Adjustments column in the worksheet.

7.  In totals. With assets, then liabilities, then equity, then income and lastly, expenses, presented in that order.