When I first started working on financial statement reviews and audits I was introduced to the "R1." After making sure retained earnings rolled, it was off to the "R1!" "R1" was the name of the work-paper in the file that reconciled the job schedules (billings and job costs) to the trial balance. I would learn after a year or so that this was one of the most crucial work-papers in the file! You need to have complete information before you can move to the WIP calculation! I have uploaded a variation of the R1 for you to download here! So how does it work?! Stay tuned for the following lessons!
R1
.xlsx
Download XLSX • 17KB