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THE ACCOUNTING CYCLE : STEP BY STEP PROCESS - Coggle Diagram
THE ACCOUNTING CYCLE : STEP BY STEP PROCESS
Unadjusted Trial Balance
a. Total Debit = Total Credits
Financial Statements
a. Income Statement
• Rev - Exp = Net Income
b. Statement of Retained Earnings
• Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings
c. Balance Sheet
• Assets = Liabilities + Equity
d. Statement of Cash Flows
• Operating Activities
• Investing Activities
• Financing Activities
Adjusting Entries
a. Accrued Expenses
b. Accrued Revenues
c. Deferred Expenses
d. Deferred Revenues
STEP 1 : ANALYZE :
Analyze
a. Which Account?
b. Which Account Type? (Asset, Liability, Equity)
c. Increasing or Decreasing?
d. Debit or Credit?
Journalize
a. Debits First
b. Credits Indented
c. Debits = Credits
Adjusted Trial Balance
a. Total Debits = Total Credits
Post-Closing Trial Balance
a. Total Debits = Total Credits
Post
a. Date
b. Debit / Credit Entry
c. Balance
Closing Entries
a. Close Revenues to Income Summary
b. Close Expenses to Income Summary
c. Close Income Summary to Retained Earnings
d. Close Dividends to Retained Earnings