The Accounting Cycle
The 8 Steps!
1.) Analyzing the transactions are important in putting the correct information into the proper account..
2.) Journalizing the transactions into the general journal.
3.) Posting the transactions in the account into the general ledger.
4.) Preparing the worksheet with all of the information recorded from the general journal and general ledger.
5.) Prepare financial statements from the information filled out in the worksheet. These statements are labeled as the balance sheet and income statement.
6.) Check the financial statements and journalize the adjusting and closing entries from the account.
7.) Post those adjusting entries and closing entries into the general ledger and making sure all closing accounts equal 0.
8.) Prepare the post-closing trial balance by making sure that your debits and credits equal each other and if they don't, go back and see where you made a mistake.