Project 1
1. Project 1
1.7. Page 2
Project 1: The Worksheet
What Do I Need to Know?
You need to make sure that all the balances from the ledger you developed in the first training room have been calculated correctly before you move or extend any of those numbers into this training room worksheet. Once you have confirmed the accuracy of the past numbers, you can extend these amounts into the appropriate sections of the worksheet. These numbers will either go into the income statement columns or the balance sheet columns—never into both. To see an example, view Extend the Worksheet.
The balance sheet, as you may recall from FIN1020, has three types of accounts. They are assets, liabilities, and owner’s equity, which includes capital and drawing. Only these accounts will be included in the balance sheet section.
The income statement columns will have only revenue and expense account balances.
Why Is This Important?
This information allows the calculation of a net income or a net loss, which will be done in the next training room. The information from the income statement columns will be used to complete an income statement financial statement. The information from the balance sheet columns will be used to complete a balance sheet financial statement when you complete the financial statements in Project 2.
What Do I Need to Do?
Open Gurpreet’s Worksheet, which you saved in your course folder from the last training room. Make sure that the trial balance columns are equal before you continue, as you do not want to extend wrong numbers into the other worksheet columns.
Extend the worksheet as shown in Gurpreet’s Worksheet Extended.
Important Note: Notice that in the income statement columns, total debits do not equal total credits. Also, in the balance sheet columns, the total debits do not equal the total credits. This is because the worksheet is not complete and will be continued in the next training room. Upon the completion of the worksheet, all debits will equal credits.