@ 2012, Cengage Learning Completing the Accounting Cycle LO 1 – Understanding the Accounting Cycle
@ 2012, Cengage Learning Completing the Accounting Cycle LO 1 – Understanding the Accounting Cycle.
Dec 23, 2015
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@ 2012, Cengage Learning
Completing the Accounting Cycle
LO 1 – Understanding the Accounting Cycle
Flow of Accounting Information
LO 1LO 1
(continued)
Flow of Accounting Information
LO 1LO 1
(continued)
Flow of Accounting Information
LO 1LO 1
(concluded)
End-of-Period Spreadsheet (Work Sheet)End-of-Period Spreadsheet (Work Sheet)
Unadjusted TB
Accounts Dr Cr Dr Cr Dr Cr
Adjustments Adjusted TB
Flow of Accounting Information
Account balances are listed in the Unadjusted Trial Balance columns using the ending balances found in the general ledger.
LO 1LO 1
(continued)
End-of-Period Spreadsheet (Work Sheet)End-of-Period Spreadsheet (Work Sheet)
Accounts Dr Cr Dr Cr Dr Cr
Adjustments Adjusted TB
Flow of Accounting Information
Adjustments are entered here. Two possibilities: Deferrals – Existing balances are changed Accruals – New information is entered
LO 1LO 1
(continued)
Unadjusted TB
Accounts Dr Cr Dr Cr Dr Cr
Adjustments Adjusted TB
End-of-Period Spreadsheet (Work Sheet)End-of-Period Spreadsheet (Work Sheet)
Flow of Accounting Information
Adjustments are combined with the unadjusted trial balance amounts to provide balances for the Adjusted Trial Balance columns.
LO 1LO 1
(continued)
Unadjusted TB
Adjusted TB
Accounts Dr Cr Dr Cr Dr Cr
Income State. Balance Sheet
End-of-Period Spreadsheet (Work Sheet)End-of-Period Spreadsheet (Work Sheet)
LO 1LO 1Flow of Accounting Information
Revenue and expense balances in the Adjusted Trial Balance columns are extended to the Income Statement columns.
(continued)
Adjusted TB
Accounts Dr Cr Dr Cr Dr Cr
Income State. Balance Sheet
End-of-Period Spreadsheet (Work Sheet)End-of-Period Spreadsheet (Work Sheet)
Flow of Accounting Information
Asset, liability, and stockholders’ equity, balances in the Adjusted Trial Balance columns are extended to the Balance Sheet columns.
LO 1LO 1
(concluded)
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