U2 L12- The Six Column Worksheet

U2 L12- The Six Column Worksheet - The Six-Column Worksheet...

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The Six-Column Worksheet You are now familiar with the two major financial statements; income statement and balance sheet. Before preparing the financial statements at the end of an accounting period, it is important to ensure that the ledger is balanced, by means of a trial balance. Most accountants also make use of an informal working document, known as a work sheet , which serves to organize the company's accounts and their balances in preparation for the financial statements. The work sheet that most accountants use is an eight-column work sheet, but we will begin with a six-column work sheet, in order to learn the basic functions of it first. On a work sheet, we only use one account to represent all of the company's accounts receivable, and another account to represent all of the company's accounts payable. These are called control accounts. An accounts receivable control account is a single account that contains the sum of the balances of all the individual accounts receivable accounts in a company's ledger. An accounts payable control account is also a single account that contains the sum of the balances of all the individual accounts payable accounts in a company's ledger. By summarizing these into two accounts, the work sheet, and the trial
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This note was uploaded on 07/15/2011 for the course AFM 102 taught by Professor Aa during the Summer '07 term at Court Reporting Institute of Dallas.

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U2 L12- The Six Column Worksheet - The Six-Column Worksheet...

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