(5) Completing the Accounting Cycle.pdf - Session 5 Chapter 4 Concepts are rearranged and derived from reference in the bibliography its Resources Point

(5) Completing the Accounting Cycle.pdf - Session 5 Chapter...

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Session 5 Chapter 4 Concepts are rearranged and derived from reference in the bibliography ( & its Resources )
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Point of Thinking How to prepare a more complete version of an adjusted trial balance ? & How to complete the accounting cycle by showing how to close the books, beginning with the adjusted trial balance
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Outcomes &Outlines based on the CDF Learning outcomes Completing the Accounting Cycle Major Outlines - Overview of the accounting cycle - The worksheet - Closing the accounts - Completing the accounting cycle - Classifying assets and liabilities
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Sources of the outlines - Read the Book on MyAccountingLab ( From Chapter resources ) ( Pearson e-text) - Take the lecture’s notes and problem solving - Follow the guidelines on the power point - You can refer to several other references if you like.
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5 Prepare an accounting worksheet Use the worksheet to prepare financial statements Close the revenue, expense, and dividend accounts Prepare the post-closing trial balance
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6 Classify assets and liabilities as current or long-term Describe the effect of various transactions on the current ratio and the debt ratio Understand reversing entries For Self Study
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Process used to produce financial statements A worksheet summarizes needed data Cycle begins with Assets = Liabilities + Equity and revenues and expenses set equal zero Accounting occurs: During the period At the end of the period 7
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8 Journalize Transaction Post to Accounts Adjust Accounts Prepare Financial Statements Close Accounts During the period At the end of the period
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Prepare an accounting worksheet 9 1
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A tool used to summarize information NOT: A journal A ledger A financial statement Computerized spreadsheets work well Contains heading similar to statements 10
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Example : Worksheet in total
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Example : Worksheet in total
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Example : Worksheet in total
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Example : Worksheet in total
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Example : Worksheet in total
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Quick Check 1. Which part of the accounting cycle provides information to help a business decide whether to expand its operations? a. Post-closing trial balance b. Adjusting entries c. Closing entries d. Financial statements d
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Quick Check 2. Which columns of the accounting worksheet show unadjusted amounts? a. Adjustments b. Trial balance c. Income statement d. Balance sheet b
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Data for the unadjusted trial balance of Mexican Riviera Tanning Salon at March 31, 2012, follow. Adjusting data for March 2012 are: Les Neeland, the principal stockholder, has received an offer to sell the company. He needs to know the net income for the month covered by these data. 1. Prepare the worksheet for Mexican Riviera Tanning Salon.
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