1 / 8

THE ACCOUNTING CYCLE

THE ACCOUNTING CYCLE. FINANCIAL TRANSACTION OCCURS RECORD TRANSACTIONS IN GENERAL JOURNAL POST TO THE GENERAL LEDGER RECORD ADJUSTING ENTRIES IN GENERAL JOURNAL PREPARE FINANCIAL STATEMENTS RECORD CLOSING ENTRIES IN GENERAL JOURNAL START OVER. FINANCIAL TRANSACTION OCCURS.

barto
Télécharger la présentation

THE ACCOUNTING CYCLE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE ACCOUNTING CYCLE • FINANCIAL TRANSACTION OCCURS • RECORD TRANSACTIONS IN GENERAL JOURNAL • POST TO THE GENERAL LEDGER • RECORD ADJUSTING ENTRIES IN GENERAL JOURNAL • PREPARE FINANCIAL STATEMENTS • RECORD CLOSING ENTRIES IN GENERAL JOURNAL • START OVER

  2. FINANCIAL TRANSACTION OCCURS • BUYING OR SELLING SOMETHING FROM AN EXTERNAL PARTY • BORROWING OR PAYING OFF DEBT • OWNERS PUTTING IN OR TAKING OUT MONEY

  3. RECORD TRANSACTION IN GENERAL JOURNAL • GENERAL JOURNAL - A CHRONOLOGICAL RECORD OF ALL FINANCIAL TRANSACTIONS • USES THE DOUBLE ENTRY SYSTEM - FOR EVERY DEBIT THERE IS A CREDIT • EVERY TRANSACTION AFFECTS AT LEAST TWO ACCOUNTS

  4. GENERAL LEDGER • WHERE SIMILAR TRANSACTIONS ARE GROUPED INTO T ACCOUNTS • THESE T ACCOUNTS ARE THEN TOTALED

  5. ADJUSTING ENTRIES • ADJUSTING ENTRIES TO FIX ERRORS IN THE GENERAL LEDGER DUE TO: • PASSAGE OF TIME • THEFT OF MISPLACEMENT • JOURNAL ENTRY OMITTED • JOURNAL ENTRY TO WRONG ACCOUNT • JOURNAL ENTRY FOR WRONG AMOUNT

  6. FINANCIAL STATEMENTS PREPARED • INCOME STATEMENT • RETAINED EARNINGS STATEMENT • BALANCE SHEET Statement • CASH FLOW Statement

  7. CLOSING ENTRIES • ALL REVENUE, EXPENSE, AND DIVIDENDS PAID ARE CLOSED OUT TO ZERO SO THAT THE NEW YEAR WILL BEGIN WITH A ZERO BALANCE

  8. START OVER • THAT’S YOUR JOB

More Related