Concept explainers
Introduction: - An accounting cycle is a process of making financial statements of a company for a specific period. The cycle involves the following process:-
• Beginning account balances
• Analyzing and journalizing transactions
• Posting entries to the accounts
• Computing unadjusted balance in each account and preparing unadjusted
• Entering unadjusted trial balance on the worksheet
• Journalizing and posting
• Preparing adjusted trial balance
• Preparing financial statements
• Journalizing and posting closing entries
• Preparing the post closing trial balance.
A classified
Income Statement is the statement showing details of income and expenses over a specific accounting period.
Balance sheet is a statement showing details of company’s assets and liabilities at a certain point of time.
Requirement 1:
To Prepare:-
T-accounts using balances in the unadjusted accounts.
Requirement 2:
To Prepare:
• Worksheet for the year ended December 31st 2016.
Requirement 3:
To Prepare:-
Adjusting entries and posting it to accounts.
Requirement 4:
To Prepare:
• Adjusted Trial Balance.
Requirement 5:
To Prepare:
Income statement, statement of owner’s equity and the classified balance sheet in report form
Requirement 6:
To Prepare:
Closing entries and posting it to the accounts.
Requirement 7:
To Prepare:
Post-closing trial balance
Requirement 8:
To prepare:
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Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)
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