e Worksheet

• It is an accounting device used to facilitate the preparation of adjusting entries, financial

statements, and closing entries.

• e preparation of the worksheet is an optional step in the accounting cycle. e Accountant,

at his discretion, may prepare a 10-column or an 8-column worksheet.

• A 10-column worksheet provides for the following five (5) sections, with debit and credit
money columns:

1. Trial Balance

2. Adjustments

3. Adjusted Trial Balance

4. Income Statement

5. Balance Sheet

• e Adjusted Trial Balance is not provided on an 8-column worksheet.

• e worksheet is normally accomplished by the Accountant using a pencil, to facilitate

correction of errors.

• Formal financial statements may be already prepared based on the completed worksheet, even
if the adjusting entries are not yet journalized and posted.

• e worksheet does not take the place of adjusting and closing entries. ese entries are still
prepared and posted accordingly.