Chapter 4, Problem 4.1BP

To determine

Worksheet:

A worksheet is the summarized form of accounting information which is made in order to ensure that the accounts are made properly.

Income Statement:

Income Statement is prepared by all the companies by reporting all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Retained Earnings Statement:

Retained Earnings Statement is the statement showing the balance of retained earnings left at the end of the period after including the net profit for the period and distributing the dividend to the stockholders.

Classified Balance Sheet:

A classified Balance Sheet represents the financial information under different heads of classification in order to make it easy for the users of financial statements to understand the financial position of the company.

Classification Heads

• Current Assets
• Long-Term Investments
• Property Plant and Equipment
• Intangible Assets
• Current Liabilities
• Long-Term Liabilities
• Stockholder’s Equity

Adjusting Entries:

Adjusting entries are those entries which are recorded in the books at the end of an accounting period in order to recognize the incomes and expenses in the period in which they were earned or incurred.

Closing entries:

Closing entries are those journal entries which are passed to transfer the balances of temporary accounts to the permanent accounts. These are passed at the end of the accounting period, to transfer the final balance.

To Prepare: The complete Worksheet, Income Statement, Retained Earnings Statement, Classified Balance Sheet, Adjusting entries and Closing entries.