Textbook 6-4

Check for Errors in the Trial Balance Column: 1. Have all general ledger account balances been copied in the trial balance column correctly? 2. Have all general ledger account balances been recorded in the correct Trial Balance column?

Check for Errors in the Adjustments Columns: 1. Do the debits equal the credits for each adjustment? Use the small letters that label each part of an adjustment to help check accuracy and equality of debits and credits. 2. Is the amount for each adjustment correct?

Check for Errors in the Income Statement and Balance Sheet Columns: 1. Has each amount been copied correctly when extended to the Income Statement or Balance Sheet column? 2. Has cash account balance been extended to the correct Income Statement or Balance Sheet column? 3. Has the net income or net loss been calculated correctly? 4. Has the net income or net loss been recorded in the correct Income Statement or Balance Sheet column?

If a pair of work sheet columns does not balance and an error cannot be found on the work sheet, look for an error in posting from the journal to the general ledger accounts. As each item in an account or a journal entry is verified, a check mark should be placed next to it. The check mark indicates that the item has been checked for accuracy. 1. Have all amounts that need to be posted actually been posted from the journal? To correct, complete the posting to the correct account. When posting is corrected, recalculate the account balance and correct it on the work sheet. 2. Have all amounts been posted to the correct accounts? To correct, follow these steps.

Do debits equal credits in each journal entry?

Is each journal entry amount recorded in the correct journal column?

Is information in the Account Title column correct for each journal entry?

Are all of the journal amount column totals correct?

Does the sum of debit column totals equal the sum of credit column totals in the journal?

Have all transactions been recorded?