Always remember the Accounting Cycle, it is extremely vital!
What is the Accounting Cycle excatly?
Description of steps
Which accounts are affected?
How is each account classified?
How is each classification changed?
How is each amount entered into the accounts?
A journal is used to record transaction's in chronological order.
Steps include: Draw a T-account and record your transaction on the journal.
Transferring information from a journal entry to a ledger account
Steps: Write the date, write the journal page number in the Post Ref column, write the debit amount in the debit column, write the new account balance in the balance debit column, and return to the journal and write the account number in the Post Ref column.
An accounting worksheet is a spreadsheet used to prepare accounting information and reports.
Prepare Financial Statements
A financial statement is a formal record of the financial activities and position of a business, person, or other entity.
Journalize adjusting and closing entries
record the Trial Balance Account Titles and amounts, also record the adjusting entries and extend all income statement account balances.
Post adjusting's and closing entries
Debit sales and credit income summary, also debit capital and credit drawing.