m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson Completing the Accounting Cycle M ask Team of NJDAWIWMIL ACOJAVNAVA School of Business, Sum Yatagen University
Lesson 5 Completing the Accounting Cycle Task Team of FUNDAMETAL ACCOUNTING School of Business, Sun Yat-sen University
Outline Q Describe the preparation of adjusted trial balance Describe and prepare a worksheet and describe its usefulness Describe the closing process and explain why temporary accounts are closed each period. Prepare closing entries Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
2 Outline ⧫ Describe the preparation of adjusted trial balance ⧫ Describe and prepare a worksheet and describe its usefulness. ⧫ Describe the closing process and explain why temporary accounts are closed each period. ⧫ Prepare closing entries
Accounting Cycle 2 3. Post Journalize 1. Analyze Transactions 4. Unadjusted trial balance Start the 8. Close next cycle 5. Adjust 7. Prepare finance 6. Adjusted statements trial balance Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3
3 Accounting Cycle 1.Analyze Transactions 2. Journalize 3. Post 4. Unadjusted trial balance 5. Adjust 6. Adjusted trial balance 7. Prepare finance statements 8.Close Start the next cycle
What we have done? A So far we have discussed the following steps in the accounting cycle: D Analyzing D Recording D Posting n Unadjusted trial balance Lets start n Adjusting from the worksheet n Adjusted trial balance Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
4 What We Have Done? ⧫So far we have discussed the following steps in the accounting cycle: Analyzing Recording Posting Unadjusted trial balance Adjusting Adjusted trial balance Let’s start from the worksheet
What are on the worksheet? o A worksheet includes following columns n Unadjusted trial balance. n Adjusting entries o Adjusted trial balance income statement 囗 Balance sheet Worksheet can be used to simplify the preparation of financial statements Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5
5 What are on the Worksheet? ⧫ A worksheet includes following columns: Unadjusted trial balance. Adjusting entries Adjusted trial balance. income statement Balance sheet ⧫ Worksheet can be used to simplify the preparation of financial statements