Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 4-1

Purpose:

(L.O. 1) This exercise will allow you to quickly check your knowledge of how items are extended on a worksheet.

A partial jumbled worksheet for the Piper Wood Investigative Services Corporation appears below. (The accounts are not listed in their usual order, the worksheet is only partially illustrated, and the Trial Balance and Adjustments columns have been omitted.)

PIPER WOOD INVESTIGATIVE SERVICES CORPORATION

Worksheet

For the Year Ended December 31, 2014

Instructions

For each account, place an “X” in the appropriate Adjusted Trial Balance column pair to indicate whether the account balance will appear in the Debit or Credit column (assume a normal balance in each account) on the worksheet. Also for each account, place an “X” in the appropriate Income Statement or Balance Sheet column to indicate the column to which the balance should be extended. The first one is done for you.

TIP: Because the accounts are in a jumbled order, you must first identify for each item the type of account and then determine where the related amounts will fall column-wise on the worksheet.