What worksheet is used for?
It is a device used for easy preparation of adjusting entries and financial statements. The worksheet is a multi-column sheet or a computer spreadsheet where the accountant writes, in brief, information necessary for the preparation of adjusting entries and financial statements.
What is a complete worksheet?
A worksheet consists of sections that list in a columnar format the company’s original trial balance, adjustments to the trial balance, adjusted trial balance, income statement, balance sheet and statement of retained earnings. Each section of the worksheet must have a debit and credit column with balanced totals.
What is worksheet prepared?
Definition: Worksheets are prepared at the end of an accounting period and usually include a list of accounts, account balances, adjustments to each account, and each account’s adjusted balance all sorted in financial statement order. Most of the preparation work goes into drafting the worksheets.
Is worksheet required?
Though they are not required, worksheets allow companies to see account balances and how adjusting entries would affect their ledgers before they prepare their financial statements.