The classic ten-column worksheet connects the unadjusted trial balance, adjustments, adjusted trial balance and financial statements. Each pair has a debit and credit column. Enter the adjustment facts first, then calculate each adjusted account balance. Extend revenue and expenses to the income statement; extend assets, liabilities and equity to the balance sheet.
An adjustment can introduce an account that had no unadjusted balance. Wages Payable and Accumulated Depreciation are common examples. A contra asset stays on the credit side of the balance sheet columns. Net income is the balancing difference in the statement columns, not another adjustment to the trial balance. Use a net loss in the opposite direction when expenses exceed revenue.