Accounting Cycle Paper

Topics: Income statement, Balance sheet, Generally Accepted Accounting Principles Pages: 2 (771 words) Published: March 2, 2013
Accounting Cycle Paper
By Sherry Woodward
July 9, 2012

In this paper we are suppose to explain the accounting cycle at our organization, however when I asked my boss the only information that he would give me was the that Circle K has a 13 periods in a year and that their calendar end on April 15. An accounting cycle is a logical series of steps that an accountant will follow to keep the necessary accounting records along with preparing financial statements. There are eight steps to the accounting cycle. The first step of the accounting cycle is to analysis transactions and selected other events. However one of the problems with this is to determine what to record and what not to record. The second step of the accounting cycle is journalizing. This means that the company needs to record the transactions and other events that were selected, that affect its assets, liabilities, and equities. The third step of the accounting cycle is posting. This is the procedure that involves transferring the journal entries to the ledger accounts. The fourth step of the accounting cycle is preparing an unadjusted trial balance. A company will normally prepare a trial balance at the end of the accounting period. This trial balance list all of the accounts in the order in which they appear on the ledger, the debt balances are listed in the left column and the credit balances are listed in the right column. The fifth step of the accounting cycle is adjusting entries. By conducting adjusting entries it makes it possible to report on the balance sheet the appropriate assets, liabilities, and owner’s equity at the statement date. By also making adjusting entries it makes it possible to report on the income statement the proper revenues and expenses for the period. Also the debit and credit are supposed to be equal. When organizing the trail balance to make sure that the debit and credit are equal. A trial balance is a list of all of the ledger accounts, the debits will be in...
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