On the work sheet, the capital stock and dividends account balances are extended to the Balance Sheet columns.

Name: On the work sheet, the capital stock and dividends account balances are extended to the Balance Sheet columns.
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This is a common practice in preparing balance sheets. The balances of equity accounts, such as capital stock and dividends, are usually reflected in the balance sheet columns to show their current status.

On the Work Sheet, the Capital Stock and Dividends Account