+ All Categories
Home > Documents > Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance...

Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance...

Date post: 15-Dec-2015
Category:
Upload: jahiem-jarrard
View: 233 times
Download: 2 times
Share this document with a friend
Popular Tags:
40
Using Excel to Prepare Trial Balance Worksheets
Transcript
Page 1: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Using Excel to Prepare Trial Balance Worksheets

Page 2: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

What are Trial Balance Worksheets?

• Trial Balance Worksheets are prepared by accountants at the end of an accounting period.

• A Trial Balance is prepared from the General Ledger. All accounts and their respective balances are listed on a worksheet.

• The Trial Balance is footed. Total Debit Accounts must equal Total Credit Accounts.

Page 3: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Trial Balance

LUCILLE'S PHONE SERVICE

TRIAL BALANCE WORKSHEET TRIAL BALANCE

MARCH 31, 20X3

The Trial Balance DR CRfor Lucille's Phone CASH 7,961Service is shown here: ACCOUNTS RECEIVABLE 8,472

SUPPLIES 810Notice that: PREPAID RENT 1,600

EQUIPMENT 9,300..The accounts are ACCUMULATED DEPR., EQUIPMENTlisted in general ledger ACCOUNTS PAYABLE 4,347order-assets first ACCRUED WAGES PAYABLEthen liabilities, then UNEARNED ANS. SERV REV 1,776equities, revenues COMMON STOCK 10,866and finally expenses. RETAINED EARNINGS 1,000

DIVIDENDS 4,268..The debit and credit ANSWERING SERV REV 19,003columns are footed WAGE EXPENSE 3,891and are equal. REPAIR EXPENSE 690

DEPRECIATION EXPENSE..A double line is used SUPPLIES EXPENSEto indicate a final total. RENT EXPENSE

----------------------------------------36,992 36,992============

Page 4: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Trial Balance-A Closer Look

LUCILLE'S PHONE SERVICE Rows Column G Column HThe Trial Balance TRIAL BALANCE 2for Lucille's Phone MARCH 31, 20X3 3Service is shown again 4 DR CR

for a closer look CASH 5 7,961

ACCOUNTS RECEIVABLE 6 8,472

..By using excel SUPPLIES 7 810

the accountant PREPAID RENT 8 1,600

can insert a formula EQUIPMENT 9 9,300

which will automatically ACCUMULATED DEPR., EQUIPMENT 10add up a column of ACCOUNTS PAYABLE 11 4,347

numbers. ACCRUED WAGES PAYABLE 12UNEARNED ANS. SERV REVENUE 13 1,776

..There are many ways to COMMON STOCK 14 10,866

do this. Two Examples are: RETAINED EARNINGS 15 1,000

DIVIDENDS 16 4,268

1. Write out the formula ANSWERING SERV REV 17 19,003

2. Use the sum sign on the WAGE EXPENSE 18 3,891

tool bar. (It looks like an REPAIR EXPENSE 19 690

"E".) And highlight DEPRECIATION EXPENSE 20the cells to be added. SUPPLIES EXPENSE 21

RENT EXPENSE 2223 ----------------------------------------------------------------------

=SUM(G5:G23) =SUM(H5:H23)

================================================

Page 5: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Trial Balance – An Even Closer Look

LUCILLE'S PHONE SERVICE Rows Column G Column HThe Trial Balance TRIAL BALANCE 2for Lucille's Phone MARCH 31, 20X3 3Service is shown again 4 DR CR

for an even closer look CASH 5 7,961

ACCOUNTS RECEIVABLE 6 8,472

The formula in the first SUPPLIES 7 810

column is: =SUM(G5:G23) PREPAID RENT 8 1,600

(To work it must be exact.) EQUIPMENT 9 9,300

ACCUMULATED DEPR., EQUIPMENT 10

All excel formulas begin ACCOUNTS PAYABLE 11 4,347

with an "=" sign. ACCRUED WAGES PAYABLE 12

UNEARNED ANS. SERV REVENUE 13 1,776

To add a column of COMMON STOCK 14 10,866

numbers use "SUM"; RETAINED EARNINGS 15 1,000

Use "(" then the first DIVIDENDS 16 4,268

cell in the group --ie. "G5"; ANSWERING SERV REV 17 19,003

then ":"; then the last WAGE EXPENSE 18 3,891

cell in the group --ie. "G23". REPAIR EXPENSE 19 690

DEPRECIATION EXPENSE 20Highlighting the cells SUPPLIES EXPENSE 21G5,G6,G7,G8,G9 etc. to G23 RENT EXPENSE 22will work just as well. 23 ----------------------------------------------------------------------

=SUM(G5:G23) =SUM(H5:H23)

================================================

Page 6: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Why Do Accountants Prepare Trial Balance Worksheets?

Trial Balance Worksheets allow

accountants to adjust general ledger

balances for economic events that

have occurred but are not yet

reflected in the books and records.

Page 7: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

What kind of events require adjustments?

• Allocations

• Accruals

• Corrections

Page 8: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

What accounts require allocation adjustments?

• Prepaid Expenses, [Assets] that have been used up or expired, require adjustment to reflect actual end of accounting period balances:– Prepaid Rent– Prepaid Insurance– Supplies– Accumulated

Depreciation

• Unearned Revenues, [Liabilities] arising from customer deposits and advances, that have been earned also require adjustment to reflect actual end of accounting period balances: – Unearned Fees– Unearned

Subscriptions

Page 9: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

What Accounts Require Accruals?

• Revenue that has been earned but has not yet been recorded at the end of an accounting period must be adjusted for accruals:– Accrued Receivables– Interest Receivable– Accounts Receivable

• Expenses that have been incurred but not yet recorded at the end of an accounting period must be adjusted for accruals:– Accrued Payables – Wages Payable– Utilities Payable– Accounts Payable

Page 10: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Adjusting Entries-Examples

Lucille’s Phone Service is preparing adjusting entries for the period ended March 31, 20X3 for the following economic events.

a. The remaining supplies not yet used are counted and found to be equal to $260.

b. On January 1, 20X3, Lucille paid 4 months rent ($1,600). An adjustment needs to be made to record the expired portion of rent which covered January, February, and March.

c. Depreciation for the period is $110.

d. $300 of Unearned Answering Service Revenue has been earned by March 31, 20X3.

e. Wages of $200 due to employees on March 31, 20X3 will not be paid until April 3, 20X3.

Page 11: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Adjusting Entries

• Adjusting entries are recorded in the General Journal.

• The Accountant Posts the adjusting entries to a Trial Balance Worksheet.

• The Worksheet is used to determine the ending balances for the period before the adjustments are actually posted to the general ledger.

• Financial statements can be prepared from the Worksheet.

Page 12: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Adjusting Entries-A Closer Look Journal Entries need to be prepared in good form before the

Trial Balance can be adjusted

LUCILLE'S PHONE SERVICEAdjusting Journal EntriesMarch 31, 20X3

a SUPPLIES EXPENSE 550SUPPLIES 550

OFFICE SUPPLIES OF $810 NEED TO BE ADJUSTED TO REFLECT THE

ACTUAL AMOUNT OF OFFICE SUPPLIES REMAINING OF $260.

b RENT EXPENSE 1,200PREPAID RENT 1,200

JANUARY, FEBRUARY AND MARCH REPRESENT 3 MONTHS OF $400 MONTHLY

RENTAL THAT HAS EXPIRED. ONLY THE APRIL DEPOSIT OF $400 REMAINS.

c DEPRECIATION EXPENSE 110ACCUMULATED DEPRECIATION 110

TO RECORD DEPRECIATION FOR THE PERIOD.

d UNEARNED ANS SERV REVENUE 300ANSWERING SERVICE REVENUE 300

TO RECORD EARNED INCOME.

e WAGES EXPENSE 200ACCRUED WAGES PAYABLE 200

TO RECORD WAGE EXPENSE INCURRED BUT NOT YET PAID

Page 13: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Trial Balance Worksheet

Using Excel to prepare a Trial Balance Worksheet can

reduce errors and duplication of effort.

Page 14: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Trial Balance Worksheet

LUCILLE'S PHONE SERVICETRIAL BALANCE ADJUSTED INCOMEMARCH 31, 20X3 TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE BALANCESHEET STATEMENT

DR CR REF DR CR DR CR DR CR DR CRCASH 7,961ACCOUNTS RECEIVABLE 8,472SUPPLIES 810PREPAID RENT 1,600EQUIPMENT 9,300ACCUMULATED DEPR. EQUIPMTACCOUNTS PAYABLE 4,347ACCRUED WAGES PAYABLEUNEARNED ANS. SERV REV 1,776COMMON STOCK 10,866RETAINED EARNINGS 1,000DIVIDENDS 4,268ANSWERING SERV REV 19,003WAGE EXPENSE 3,891REPAIR EXPENSE 690DEPRECIATION EXPENSESUPPLIES EXPENSERENT EXPENSE

---------------------------- ----------------------------------------------------------------------------------------------------------------36,992 36,992

===== ===== ========================================

Page 15: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Trial Balance Worksheet-A Closer Look

The Trial Balance Worksheet is labeled with: - Name of Company - Date - Columns for the Trial Balance Accounts - A Reference Column (REF) for Labeling the Adjustments - Columns for posting Adjustments - Columns for the Adjusted Trial Balance Totals - Columns for Balance Sheet Accounts - Columns for Income Statement Accounts

LUCILLE'S PHONE SERVICE

TRIAL BALANCE WORKSHEET TRIAL BALANCE ADJUSTED BALANCE INCOME

MARCH 31, 20X3 ADJUSTMENTS TRIAL BALANCE SHEET STATEMENTDR CR REF DR CR DR CR DR CR DR CR

Page 16: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Trial Balance Worksheet-An Even Closer Look

TRIAL BALANCE ADJUSTED BALANCE INCOME

ADJUSTMENTS TRIAL BALANCE SHEET STATEMENTDR CR REF DR CR DR CR DR CR DR CR

Columns in an Excel Worksheet must be formatted:

-Columns need to be adjusted for “Width”. -Cells need to be adjusted for numerical content. -Formulas may need to be entered.

Page 17: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Trial Balance Worksheet-Formatting Columns

Formatting column width requires moving to a column clicking “Format” then “Column” then “Width” and inserting a number that will allow a column to be wide enough to accommodate the numerical information. A column that is too small will not be able to show a number and will show “####” instead. Sometimes experimentation is the best way to find the right width.

A column’s width can be determined by going to it and clicking “Format” then “Column” then “Width” and seeing what number is already inserted.

Page 18: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Trial Balance Worksheet-Formatting Cells

Formatting cells requires going to the individual cell or highlighting a group of cells clicking “format” then “cells” then choosing an option from the menu.

(This is a good time to experiment.)

Page 19: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Trial Balance Worksheet-Formatting Cells

Click:• “Format” • “Cells”• “Number”……Choose “Number” • Choose “(1,234)” (This option will

show negative numbers in brackets.)• Remember to assign the number of decimal

places. (Use zero today.)• Remember to check the box that says: “Use 1000 Separator (,)”. (This will separate

thousands with commas- for example 1000 becomes 1,000.)

Page 20: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Posting Adjustments

Now its time to post the adjustments to Lucille’s Phone Service

LUCILLE'S PHONE SERVICEAdjusting Journal EntriesMarch 31, 20X3

a SUPPLIES EXPENSE 550SUPPLIES 550

OFFICE SUPPLIES OF $810 NEED TO BE ADJUSTED TO REFLECT THE

ACTUAL AMOUNT OF OFFICE SUPPLIES REMAINING OF $260.

b RENT EXPENSE 1,200PREPAID RENT 1,200

JANUARY, FEBRUARY AND MARCH REPRESENT 3 MONTHS OF $400 MONTHLY

RENTAL THAT HAS EXPIRED. ONLY THE APRIL DEPOSIT OF $400 REMAINS.

Page 21: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Posting the Adjustments

LUCILLE'S PHONE SERVICEBefore posting the TRIAL BALANCEjournal entries MARCH 31, 20X3 TRIAL BALANCE ADJUSTMENTSmake sure that the DR CR REF DR CR"Total" columns are CASH 7,961 properly formulated with ACCOUNTS RECEIVABLE 8,472"=SUM(first cell:last cell)" SUPPLIES 810 a 550formula. (Try copying PREPAID RENT 1,600 b 1,200the formula from one cell EQUIPMENT 9,300to another rather than ACCUMULATED DEPR. EQUIPMTwriting the formula ACCOUNTS PAYABLE 4,347over and over.) ACCRUED WAGES PAYABLE

UNEARNED ANS. SERV REV 1,776When posting adjustments COMMON STOCK 10,866make sure that debits RETAINED EARNINGS 1,000and credits are posted to DIVIDENDS 4,268to correct column and ANSWERING SERV REV 19,003accounts. WAGE EXPENSE 3,891

REPAIR EXPENSE 690Use the reference DEPRECIATION EXPENSEcolumn to label the SUPPLIES EXPENSE a 550adjustments. RENT EXPENSE b 1,200

---------------------------- -------------- --------------36,992 36,992 1,750 1,750

============== ======= =======

Page 22: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Posting Adjustments(Continued)

Now its time to finish posting the adjustments to Lucille’s Phone

Servicec DEPRECIATION EXPENSE 110

ACCUMULATED DEPRECIATION 110TO RECORD DEPRECIATION FOR THE PERIOD.

d UNEARNED ANS SERV REVENUE 300ANSWERING SERVICE REVENUE 300

TO RECORD EARNED INCOME.

e WAGES EXPENSE 200ACCRUED WAGES PAYABLE 200

TO RECORD WAGE EXPENSE INCURRED BUT NOT YET PAID

Page 23: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Posting the Adjustments(Continued)

LUCILLE'S PHONE SERVICETRIAL BALANCEMARCH 31, 20X3 TRIAL BALANCE ADJUSTMENTS

DR CR REF DR CRCASH 7,961ACCOUNTS RECEIVABLE 8,472

After the adjustments SUPPLIES 810 a 550are posted, the totals PREPAID RENT 1,600 b 1,200for the debit column and EQUIPMENT 9,300the credit column are ACCUMULATED DEPR. EQUIPMT c 110both equal to 2,360. ACCOUNTS PAYABLE 4,347

ACCRUED WAGES PAYABLE e 200UNEARNED ANS. SERV REV 1,776 d 300COMMON STOCK 10,866RETAINED EARNINGS 1,000DIVIDENDS 4,268ANSWERING SERV REV 19,003 d 300WAGE EXPENSE 3,891 e 200REPAIR EXPENSE 690DEPRECIATION EXPENSE c 110SUPPLIES EXPENSE a 550RENT EXPENSE b 1,200

---------------------------- -------------- --------------36,992 36,992 2,360 2,360

============== ======= =======

Page 24: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Cross Footing Columns

LUCILLE'S PHONE SERVICETRIAL BALANCE ADJUSTED

The Adjusted MARCH 31, 20X3 TRIAL BALANCE ADJUSTMENTS TRIAL BALANCETrial Balance DR CR REF DR CR DR CRColumn shown in red CASH 7,961 7,961automatically adds ACCOUNTS RECEIVABLE 8,472 8,472the rows of numbers SUPPLIES 810 a 550 260because each cell PREPAID RENT 1,600 b 1,200 400has a formula in it EQUIPMENT 9,300 9,300not a number. ACCUMULATED DEPR. EQUIPMT c 110 110

ACCOUNTS PAYABLE 4,347 4,347ACCRUED WAGES PAYABLE e 200 200UNEARNED ANS. SERV REV 1,776 d 300 1,476COMMON STOCK 10,866 10,866RETAINED EARNINGS 1,000 1,000DIVIDENDS 4,268 4,268ANSWERING SERV REV 19,003 d 300 19,303WAGE EXPENSE 3,891 e 200 4,091REPAIR EXPENSE 690 690DEPRECIATION EXPENSE c 110 110SUPPLIES EXPENSE a 550 550RENT EXPENSE b 1,200 1,200

---------------------------- --------------------------------------------------------36,992 36,992 2,360 2,360 37,302 37,302

============== ============================

Page 25: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Cross Footing Columns-Adding Formulas

When adding the numerical content of the cells in vertical columns use the “=SUM” formula.

When adding the numerical content of the cells in horizontal rows use a formula that will add debits and credits correctly.

Page 26: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Cross Footing Columns

• The Formula for An Account that has a Normal Debit Balance should be:

= Debit Column + Debit Column(s) – Credit Column(s)

• The Formula for An Account that has a Normal Credit Balance should be:

= Credit Column + Credit Column(s) – Debit Column(s)

Page 27: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Cross Footing the Columns-A Closer Look

LUCILLE'S PHONE SERVICECOLUMN G H I J K L MTRIAL BALANCE ADJUSTED MARCH 31, 20X3 TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE ROW

DR CR REF DR CR DR CR

CASH 7,961 =G5+J5-K5 5ACCOUNTS RECEIVABLE 8,472 =G6+J6-K6 6SUPPLIES 810 a 550 =G7+J7-K7 7PREPAID RENT 1,600 b 1,200 =G8+J8-K8 8EQUIPMENT 9,300 =G9+J9-K9 9ACCUMULATED DEPR. EQUIPMT c 110 =H10-J10+K10 10ACCOUNTS PAYABLE 4,347 =H11-J11+K11 11ACCRUED WAGES PAYABLE e 200 =H12-J12+K12 12UNEARNED ANS. SERV REV 1,776 d 300 =H13-J13+K13 13COMMON STOCK 10,866 =H14-J14+K14 14RETAINED EARNINGS 1,000 =H15-J15+K15 15DIVIDENDS 4,268 =G16+J16-K16 16ANSWERING SERV REV 19,003 d 300 =H17-J17+K17 17WAGE EXPENSE 3,891 e 200 =G18+J18-K18 18REPAIR EXPENSE 690 =G19+J19-K19 19DEPRECIATION EXPENSE c 110 =G20+J20-K20 20SUPPLIES EXPENSE a 550 =G21+J21-K21 21RENT EXPENSE b 1,200 =G22+J22-K22 22

---------------------------- ------------------------------------------------------------------------------ 2336,992 36,992 2,360 2,360 =SUM(L5:L23) =SUM(M5:M23) 24

============== ========================================

Page 28: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Finishing the Worksheet

The Trial Balance Worksheet can be used to prepare Financial Statements. The account balances in the Adjusted Trial Balance must be carried over to the appropriate columns:

Balance Sheet items (Assets, Liabilities & Equity accounts).

Income Statement items (Income & Expenses).

Page 29: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Finishing the Worksheet(Continued)

LUCILLE'S PHONE SERVICETRIAL BALANCE ADJUSTED BALANCE INCOMEMARCH 31, 20X3 TRIAL BALANCE ADJUSTMTS TRIAL BALANCE SHEET STATEMENT

DR CR REF DR CR DR CR DR CR DR CRCASH 7,961 7,961 7,961ACCOUNTS RECEIVABLE 8,472 8,472 8,472SUPPLIES 810 a 550 260 260PREPAID RENT 1,600 b 1,200 400 400EQUIPMENT 9,300 9,300 9,300ACCUMULATED DEPR. EQUIPMT c 110 110 110ACCOUNTS PAYABLE 4,347 4,347 4,347ACCRUED WAGES PAYABLE e 200 200 200UNEARNED ANS. SERV REV 1,776 d 300 1,476 1,476COMMON STOCK 10,866 10,866 10,866RETAINED EARNINGS 1,000 1,000 1,000DIVIDENDS 4,268 4,268 4,268ANSWERING SERV REV 19,003 d 300 19,303 19,303WAGE EXPENSE 3,891 e 200 4,091 4,091REPAIR EXPENSE 690 690 690DEPRECIATION EXPENSE c 110 110 110SUPPLIES EXPENSE a 550 550 550RENT EXPENSE b 1,200 1,200 1,200

---------------------------- ----------------------------------------------------------------------------------------------------------------36,992 36,992 2,360 2,360 37,302 37,302

============== ============================

Page 30: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Using Excel to Carryover Balances

• Highlight All Balance Sheet Accounts in the Adjusted Trial Balance Columns-Click “Edit”.

-Select “Copy”. -Click on the first debit

cell under the Balance Sheet debit column.

-Click “Edit” then “Paste Special”

-Click on “Values” then “OK”.

• Highlight All Income Statement Accounts in the Adjusted Trial Balance Columns-Click “Edit”.

-Select “Copy”. -Click on the first debit

cell under the Income Statement debit column.

-Click “Edit” then “Paste Special”

-Click on “Values” then “OK”.

Page 31: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Finishing the Worksheet-Final Touches

The formulas for calculating the totals of the

Balance Sheet Columns

and the

Income Statement Columns

must be entered.

Page 32: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Finishing the Worksheet-A Closer Look

LUCILLE'S PHONE SERVICE COLUMN N O PTRIAL BALANCE BALANCE INCOMEMARCH 31, 20X3 SHEET STATEMENT

The formula for the DR CR DRtotals in the Debit and CASH 7,961Credit columns under ACCOUNTS RECEIVABLE 8,472Balance Sheet and SUPPLIES 260Income Statement PREPAID RENT 400is the same formula used EQUIPMENT 9,300for the totals calculated ACCUMULATED DEPR. EQUIPMT 110in the other columns: ACCOUNTS PAYABLE 4,347"=SUM(first cell:last cell)" ACCRUED WAGES PAYABLE 200

UNEARNED ANS. SERV REV 1,476However, Debits do not COMMON STOCK 10,866equal Credits under the RETAINED EARNINGS 1,000Balance Sheet and DIVIDENDS 4,268Income Statement ANSWERING SERV REVcolumns. By using the WAGE EXPENSE 4,091the formulas "=N25-O25" REPAIR EXPENSE 690& "=Q25-P25" respectively DEPRECIATION EXPENSE 110the difference between SUPPLIES EXPENSE 550the Debit & Credit RENT EXPENSE 1,200Columns can be found. ------------------------- ------------------------- -------------------------

=SUM(N6:N24) =SUM(O6:O24) =SUM(P6:P24)=N25-O25 =Q25-P25

------------------------- ------------------------- -------------------------By inserting the formulas shown on this line ………… =SUM(N25:N27) =SUM(O25:O27) =SUM(P25:P27)The worksheet becomes complete and in good form. ============= ============= =============

Q INCOME ROW STATEMENT

CR56789

10111213141516

19,303 171819202122

------------------------- 23=SUM(Q6:Q24) 24

25------------------------- 26=SUM(Q25:Q27) 27============= 28

Page 33: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Finished WorksheetLUCILLE'S PHONE SERVICETRIAL BALANCE ADJUSTED BALANCE INCOMEMARCH 31, 20X3 TRIAL BALANCE ADJUSTMTS TRIAL BALANCE SHEET STATEMENT

DR CR REF DR CR DR CR DR CR DR CRCASH 7,961 7,961 7,961ACCOUNTS RECEIVABLE 8,472 8,472 8,472SUPPLIES 810 a 550 260 260PREPAID RENT 1,600 b 1,200 400 400EQUIPMENT 9,300 9,300 9,300ACCUMULATED DEPR. EQUIPMT c 110 110 110ACCOUNTS PAYABLE 4,347 4,347 4,347ACCRUED WAGES PAYABLE e 200 200 200UNEARNED ANS. SERV REV 1,776 d 300 1,476 1,476COMMON STOCK 10,866 10,866 10,866RETAINED EARNINGS 1,000 1,000 1,000DIVIDENDS 4,268 4,268 4,268ANSWERING SERV REV 19,003 d 300 19,303 19,303WAGE EXPENSE 3,891 e 200 4,091 4,091REPAIR EXPENSE 690 690 690DEPRECIATION EXPENSE c 110 110 110SUPPLIES EXPENSE a 550 550 550RENT EXPENSE b 1,200 1,200 1,200

---------------------------- ----------------------------------------------------------------------------------------------------------------36,992 36,992 2,360 2,360 37,302 37,302 30,661 17,999 6,641 19,303

============== ============================ 12,662 12,662--------------------------------------------------------30,661 30,661 19,303 19,303

============================

Page 34: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Finished Worksheet-Balance Sheet Columns

As can be seen from the previous slide:

Balance Sheet column debits do not equal Balance Sheet column credits.

Debits are greater than Credits! The Difference is $12,662.

Page 35: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Finished Worksheet –Income Statement Columns

As can be seen from the previous slide:

Income Statement column debits do not equal Income Statement column credits.

Credits are greater than Debits! The Difference is $12,662.

Page 36: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Finished Worksheet-Determining Net Income

• The Income Statement difference=$12,662.

• The Balance Sheet difference=$12,662.

• Net Income=$12,662!

Page 37: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Finished Worksheet-Retained Earnings

The only calculation left to make is ending Retained EarningsCOLUMN G FORMULA

Beginning Retained Earnings $1,000 =O15+Net Income for the Period 12,662 =P25-Dividends (4,268) =(-N16)Ending Retained Earnings $17,930 =SUM(G28:G30)

Page 38: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

The Finished Worksheet

The finished worksheet can be used to prepare the Financial Statements:

Balance Sheet Income Statement Statement of Retained Earnings

Page 39: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Beyond the Worksheet

• Excel can be used to prepare Financial Statements.

• Excel can be used for analysis of Financial Statements.

• Excel can be used to prepare schedules.

• Using Excel saves time and money.

Page 40: Using Excel to Prepare Trial Balance Worksheets. What are Trial Balance Worksheets? Trial Balance Worksheets are prepared by accountants at the end of.

Beyond the Worksheet(Continued)

• The ability to use Spreadsheet Programs like Excel is an important skill. (Not only for accountants.)

• Excel is used by business people everywhere.


Recommended