Based on the provided worksheet, here is the step-by-step solution to complete the Balance Sheet columns.
Step 1: Identify Balance Sheet Accounts
First, we need to move the account balances from the "Adjusted Trial Balance" to the "Balance Sheet" columns. We skip the revenue and expense accounts because those go to the Income Statement (which has already been calculated for us).
The Balance Sheet accounts are:
*
Assets (Debit): Cash, Accounts Receivable, Prepaid Rent, Equipment
*
Liabilities (Credit): Accumulated Depreciation—Equipment, Notes Payable, Accounts Payable, Interest Payable
*
Equity (Credit): Owner's Capital
*
Equity (Debit): Owner's Drawings
Step 2: Fill in the Balance Sheet Columns
Let's list the numbers into the correct columns (Dr. for Debits, Cr. for Credits):
Debit Column (Assets & Drawings):
1. Cash: 11,500
2. Accounts Receivable: 8,260
3. Prepaid Rent: 2,700
4. Equipment: 24,010
5. Owner's Drawings: 3,500
Credit Column (Liabilities & Equity):
1. Accumulated Depreciation—Equipment: 4,638
2. Notes Payable: 7,620
3. Accounts Payable: 5,580
4. Owner's Capital: 27,930
5. Interest Payable: 63
Step 3: Calculate the Totals
Now, sum up both columns to find the total debits and total credits.
Total Debits:
$$11,500 + 8,260 + 2,700 + 24,010 + 3,500 = 49,970$$
Total Credits:
$$4,638 + 7,620 + 5,580 + 27,930 + 63 = 45,831$$
Step 4: Add Net Income
The worksheet shows a
Net Income of 4,139.
* Net Income increases equity, so it is recorded as a
Credit.
* To balance the sheet, we add this to the Credit column total.
Adjusted Total Credits:
$$45,831 (\text{previous total}) + 4,139 (\text{Net Income}) = 49,970$$
Step 5: Final Verification
*
Balance Sheet Debit Total: 49,970
*
Balance Sheet Credit Total: 49,970
The columns are now equal and balanced.
Final Answer:
The totals for the Balance Sheet columns are
49,970 for both Debits and Credits.
Balance Sheet Columns:
*
Debit Total: 49,970
*
Credit Total: 49,970
Parent Tip: Review the logic above to help your child master the concept of accounting worksheet.
