| A | B |
|---|
| Worksheets | used for organizing info before creating financial statements |
| Classified | financial statements have categories |
| Classifying accounts | makes them easier to understand |
| Fixed assets | accounts with a long life |
| Current liabilities | due to be paid within a year |
| Liquidity order | current assets are listed in this order |
| Current assets | assets converted into cash within a year |
| Long-term liabilities | not fully paid within the year |
| Maturity date | long-term liabilities are listed in this order |
| Balance sheets debit | where drawings is listed |
| Supporting schedule | provides additional information for financial statement |
| Owner's equity | shows changes in the owner's claim on the business |
| Net income | Inc st dr = $1000, cr = $1700 |
| Net loss | Inc st dr = $800, cr = $300 |
| Step 1 | transfer amts from trial balance to i/s or b/s |
| Step 2 | add columns |
| Step 3 | in i/s columns find net income/loss |
| Step 4 | i/s columns: add net income/loss to smaller total |
| Step 5 | b/s columns: add net income/loss to smaller total |
| Dollar signs | first number in each column and totals |
