accounting cycle dolla
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Accounting Cycle
Accounting Cycle Steps Analyzing and recording transactions via journal entries
Posting journal entries to ledger accounts
Preparing unadjusted trial balance
Preparing adjusting entries at the end of the period
Preparing adjusted trial balance
Preparing financial statements
Closing temporary accounts via closing entries
Preparing post-closing trial balance
Journal Entries
Example : Company A was incorporated on January 1, 2010 with an initial capital of 5,000 shares of common stock having $20 par value. During the first month of its operations, the company engaged in following transactions:
Ledger Accounts
Unadjusted Trial Balance
Adjusting Entries
Adjusting Entries There are following types of adjusting entries:
Accruals:These include revenues not yet received nor recorded and expenses not yet paid nor recorded. For example, interest expense on loan accrued in the current period but not yet paid.
Prepayments:These are revenues received in advance and recorded as liabilities, to be recorded as revenue and expenses paid in advance and recorded as assets, to be recorded as expense. For example, adjustments to unearned revenue, prepaid insurance, office supplies, prepaid rent, etc.
Non-cash:These adjusting entries record non-cash items such as depreciation expense, allowance for doubtful debts etc.
Financial StatementsMicrosoft Excel
Worksheet
Financial Statement Income Statement
Statement of Returned Earning
Balance Sheet
Cash Flow
Microsoft Excel Worksheet
Closing Entries
Closing Entries Temporary accounts include:
Revenue, Income and Gain Accounts
Expense and Loss Accounts
Dividend, Drawings or Withdrawals Accounts
Income Summary Account
Post-closing Trial Balance
Post-Closing Trial Balance
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