{"id":3098,"date":"2020-10-08T23:03:16","date_gmt":"2020-10-08T23:03:16","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-financialaccounting\/?post_type=chapter&p=3098"},"modified":"2020-11-24T19:57:28","modified_gmt":"2020-11-24T19:57:28","slug":"putting-it-together-completing-the-accounting-cycle","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/chapter\/putting-it-together-completing-the-accounting-cycle\/","title":{"raw":"Putting It Together: Completing the Accounting Cycle","rendered":"Putting It Together: Completing the Accounting Cycle"},"content":{"raw":"\"AYou\u2019ve completed the entire accounting cycle, from the very first transactions through journalizing, posting, and creating financial statements that report the results of operations and financial position to external users. You are now probably beginning to understand the importance of accurate accounting records and the process accountants go through to keep a business\u2019s financial books aligned and current.\r\n\r\nAlong with the accounting cycle process, you\u2019ve also gathered data that internal users can rely upon for budget reports, forecasts, and other managerial purposes. These statements and reports are the means for owners and managers involved in a business to see where a company\u2019s finances are at any given point in time and make better choices for a company\u2019s future financial health.\r\n
\r\n

The Accounting Cycle<\/h3>\r\n
    \r\n \t
  1. Analyze Transactions<\/li>\r\n \t
  2. Prepare Journal Entries<\/li>\r\n \t
  3. Post Journal Entries<\/li>\r\n \t
  4. Prepare Unadjusted Trial Balance<\/li>\r\n \t
  5. Make Adjusting Journal Entries<\/li>\r\n \t
  6. Prepare Adjusted Trial Balance<\/li>\r\n \t
  7. \u00a0Prepare Financial Statements<\/li>\r\n \t
  8. Prepare Closing Entries<\/li>\r\n \t
  9. Prepare Post-Closing Trial Balance<\/li>\r\n \t
  10. Create and Post Reversing Entries, if needed<\/li>\r\n<\/ol>\r\n<\/div>\r\nNext, we\u2019ll start taking a look at each balance sheet account in more detail, in order of a normal trial balance, starting with the main checking account and other \u201ccash\u201d issues.","rendered":"

    \"AYou\u2019ve completed the entire accounting cycle, from the very first transactions through journalizing, posting, and creating financial statements that report the results of operations and financial position to external users. You are now probably beginning to understand the importance of accurate accounting records and the process accountants go through to keep a business\u2019s financial books aligned and current.<\/p>\n

    Along with the accounting cycle process, you\u2019ve also gathered data that internal users can rely upon for budget reports, forecasts, and other managerial purposes. These statements and reports are the means for owners and managers involved in a business to see where a company\u2019s finances are at any given point in time and make better choices for a company\u2019s future financial health.<\/p>\n

    \n

    The Accounting Cycle<\/h3>\n
      \n
    1. Analyze Transactions<\/li>\n
    2. Prepare Journal Entries<\/li>\n
    3. Post Journal Entries<\/li>\n
    4. Prepare Unadjusted Trial Balance<\/li>\n
    5. Make Adjusting Journal Entries<\/li>\n
    6. Prepare Adjusted Trial Balance<\/li>\n
    7. \u00a0Prepare Financial Statements<\/li>\n
    8. Prepare Closing Entries<\/li>\n
    9. Prepare Post-Closing Trial Balance<\/li>\n
    10. Create and Post Reversing Entries, if needed<\/li>\n<\/ol>\n<\/div>\n

      Next, we\u2019ll start taking a look at each balance sheet account in more detail, in order of a normal trial balance, starting with the main checking account and other \u201ccash\u201d issues.<\/p>\n\n\t\t\t

      \n\t\t\t

      Candela Citations<\/h3>\n\t\t\t\t\t
      \n\t\t\t\t\t\t
      \n\t\t\t\t\t\t\t
      CC licensed content, Original<\/div>