RSM220H1 Study Guide - Accounting Information System, Capital Account, Trial Balance
20 Apr 2012
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Document Summary
A work sheet is a multiple column form used in the adjustment process and in financial statement preparation. A work sheet facilitates the preparation of financial statements because it organizes the account balances and the statements can be prepared before the adjusting entries are journalized and posted. Optional and an internal working tool of the accountant. A work sheet is not a journal, and it cannot be used as a basis for posting to ledger accounts. Adjusting entries are recorded in the journal, and then posted to the ledger accounts: closing the books. 2. 1 at the end of the accounting year, the accounts are made ready for the next year. To close an account, its balance is reduced to zero. 2. 2 revenue, expense and drawings accounts are that are closed. Their balances will be zero, after the closing entries are recorded and posted.
