4 days ago
Angela Kilgore
RE: Chapter 11 Discussion Question
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The purpose of the worksheet is to help accountants prepare financial statements. It is used as a tool to record adjustments and provide accurate account balances needed to prepare financial statements. It serves as the central place for all information needed to record adjustments.
Strengths of the worksheet include:
If a mistake is made on the worksheet it can be easily erased and corrected.
It brings to light any discrepancies which would be difficult to detect, and may beinadvertently entered into the journal and posted to the ledger.
It is less formal and helps to provide assurance that all details of the accounting period have been documented.
Weaknesses of …show more content…
Accounting worksheets are most often used in the accounting cycle process to draft an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and financial statements. The advantage is that it helps limit human error and it makes things easier. It also helps find mistakes and fix them more efficiently. This information is also easily shared. The disadvantage is that a spreadsheet is not an actual database, and there is no audit trail. While it may help the accuracy, you still have to transfer this information somewhere else in order to use it. The types of adjusting journal entries I would make in the periodic vs the perpetual would be ones to the purchase account. The account is recorded with each transaction as a single journal entry. Considering the cost of goods sold and merchandise inventory is not updated …show more content…
a completed worksheet has four columns: 1) Trial Balance, 2) Adjustments, 3) Income Statement, and 4) Balance Sheet. The account balances after the adjusting entries are to be carried directly to the Income Statement and Balance Sheet columns. Income Summary is the only account that doesn't combine the debit and credit amounts. These amounts are carried into the Income Statement columns as two distinct figures. These amounts are needed to complete the Income Statement. The debit amount in Income Summary in the Income Statement debit column will be used as the beginning merchandise inventory. The credit amount in Income Summary in the Income Statement credit column will be used as the ending merchandise inventory. There are three steps to completing the worksheet, complete one step at a time before moving on to the next
Angela Kilgore
RE: Chapter 11 Discussion Question
Collapse
The purpose of the worksheet is to help accountants prepare financial statements. It is used as a tool to record adjustments and provide accurate account balances needed to prepare financial statements. It serves as the central place for all information needed to record adjustments.
Strengths of the worksheet include:
If a mistake is made on the worksheet it can be easily erased and corrected.
It brings to light any discrepancies which would be difficult to detect, and may beinadvertently entered into the journal and posted to the ledger.
It is less formal and helps to provide assurance that all details of the accounting period have been documented.
Weaknesses of …show more content…
Accounting worksheets are most often used in the accounting cycle process to draft an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and financial statements. The advantage is that it helps limit human error and it makes things easier. It also helps find mistakes and fix them more efficiently. This information is also easily shared. The disadvantage is that a spreadsheet is not an actual database, and there is no audit trail. While it may help the accuracy, you still have to transfer this information somewhere else in order to use it. The types of adjusting journal entries I would make in the periodic vs the perpetual would be ones to the purchase account. The account is recorded with each transaction as a single journal entry. Considering the cost of goods sold and merchandise inventory is not updated …show more content…
a completed worksheet has four columns: 1) Trial Balance, 2) Adjustments, 3) Income Statement, and 4) Balance Sheet. The account balances after the adjusting entries are to be carried directly to the Income Statement and Balance Sheet columns. Income Summary is the only account that doesn't combine the debit and credit amounts. These amounts are carried into the Income Statement columns as two distinct figures. These amounts are needed to complete the Income Statement. The debit amount in Income Summary in the Income Statement debit column will be used as the beginning merchandise inventory. The credit amount in Income Summary in the Income Statement credit column will be used as the ending merchandise inventory. There are three steps to completing the worksheet, complete one step at a time before moving on to the next