Explanation Justification for the incorrect options of (b), (c) and (d): Preparation of income statement, preparation of adjustments and preparation of balance sheet is not the first step in the preparation of a work sheet because these steps are followed after preparing the trial balance . Therefore, these are incorrect options. Justification for the correct option (a): Steps for preparing work sheet are as follows: 1. Prepare trial balance (The balances of all accounts from the general ledger are copied to the trial balance columns). 2...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN: 9781305666160

Author: James A. Heintz, Robert W. Parry

Publisher: Cengage Learning

See similar textbooks

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Question

Chapter 14, Problem 2MC

To determine

Identify the option that is considered as the first step in preparing a work sheet.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 14, Problem 1MC

Chapter 14, Problem 3MC

Students have asked these similar questions

The trial balance section of the work sheet provides the information used in preparing the income statement. True or false?

Using the accounting equation in the picture, prepare a worksheet with trial balance, income statement, and balance sheet.

Prepare a ledger, trial balance, and prepare adjusting entries

Chapter 14 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Ch. 14 - Under the periodic inventory system, the beginning...Ch. 14 - Under the periodic inventory system, the ending...Ch. 14 - The cash received in advance before delivering a...Ch. 14 - Unearned revenue is adjusted into an expense...Ch. 14 - Sales Returns and Allowances is classified as a...Ch. 14 - Prob. 1MC Ch. 14 - Prob. 2MC Ch. 14 - Prob. 3MC Ch. 14 - Prob. 4MC Ch. 14 - Prob. 5MC

Ch. 14 - Prepare the cost of goods sold section for Josephs...Ch. 14 - The Venice Theatre sold and collected cash of...Ch. 14 - Prob. 3CE Ch. 14 - Using the partial work sheet provided below,...Ch. 14 - Prob. 5CE Ch. 14 - A firm is preparing to make adjusting entries at...Ch. 14 - Prob. 2RQ Ch. 14 - Prob. 3RQ Ch. 14 - What is an unearned revenue?Ch. 14 - Give three examples of unearned revenue.Ch. 14 - Prob. 6RQ Ch. 14 - Prob. 7RQ Ch. 14 - A firm is preparing to make adjusting entries at...Ch. 14 - ADJUSTMENT FOR MERCHANDISE INVENTORY USING T...Ch. 14 - CALCULATION OF COST OF GOODS SOLD: PERIODIC...Ch. 14 - ADJUSTMENT FOR UNEARNED REVENUES USING T ACCOUNTS...Ch. 14 - WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY...Ch. 14 - DETERMINING THE BEGINNING AND ENDING INVENTORY...Ch. 14 - JOURNALIZE ADJUSTING ENTRIES FOR A MERCHANDISING...Ch. 14 - JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY...Ch. 14 - Prob. 8SEA Ch. 14 - COMPLETION OF A WORK SHEET SHOWING A NET INCOME...Ch. 14 - COMPLETION OF A WORK SHEET SHOWING A NET LOSS The...Ch. 14 - WORKING BACKWARD FROM ADJUSTED TRIAL BALANCE TO...Ch. 14 - Prob. 12SPA Ch. 14 - ADJUSTMENT FOR MERCHANDISE INVENTORY USING T...Ch. 14 - CALCULATION OF COST OF GOODS SOLD: PERIODIC...Ch. 14 - ADJUSTMENT FOR UNEARNED REVENUES USING T ACCOUNTS...Ch. 14 - WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY...Ch. 14 - Prob. 5SEB Ch. 14 - Prob. 6SEB Ch. 14 - JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY...Ch. 14 - JOURNALIZE ADJUSTING ENTRY FOR A MERCHANDISING...Ch. 14 - COMPLETION OF A WORK SHEET SHOWING A NET INCOME A...Ch. 14 - Prob. 10SPB Ch. 14 - WORKING BACKWARD FROM ADJUSTED TRIAL BALANCE TO...Ch. 14 - WORKING BACKWARD FROM THE INCOME STATEMENT AND...Ch. 14 - A friend of yours recently opened Abracadabra, a...Ch. 14 - Jason Tierro, an inventory clerk at Lexmar...Ch. 14 - John Neff owns and operates Waikiki Surf Shop. A...Ch. 14 - Block Foods, a retail grocery store, has agreed to...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Identify the option that is considered as the first step in preparing a work sheet.

Solution Summary: The author explains that preparation of a work sheet is not the first step in preparing it because adjustments and adjustments are followed after the trial balance.

Concept explainers

Videos

Identify the option that is considered as the first step in preparing a work sheet.

Want to see the full answer?

Chapter 14 Solutions