510chapter3fall2009afterclass9172009

510chapter3fall2009afterclass9172009 - Accounting Cycle...

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Unformatted text preview: Accounting Cycle Summarized Accounting Cycle Summarized 1. Enter the transactions of the period in appropriate journals. 2. Post from the journals to the ledger (or ledgers). 3. Take an unadjusted trial balance (trial balance). 4. Prepare adjusting journal entries and post to the ledger(s). 5. Take a trial balance after adjusting (adjusted trial balance). 6. Prepare the financial statements from the second trial balance. 7. Prepare closing journal entries and post to the ledger(s). 8. Take a trial balance after closing (post-closing trial balance). 9. Prepare reversing entries (optional) and post to the ledger(s). E3-4 D e b i t C r e d i t C a s h 2 8 7 0 A c c o u n t s R e c e i v a b l e 3 2 3 1 S u p p l i e s 8 0 0 E q u i p m e n t 3 8 0 0 A c c o u n t s P a y a b l e 2 6 6 6 U n e a r n e d R e v e n u e 1 2 0 0 C o m m o n S t o c k 6 0 0 0 R e t a i n e d E a r n i n g s 3 0 0 0 R e v e n u e 2 3 8 0 W a g e e x p e n s e 3 4 0 0 O f f i c e e x p e n s e 9 4 0 1 3 , 3 7 1 1 6 , 9 1 6 E3-4 Continued Cash received from customer on account was debited for $370 and accounts receivable was credited for the same amount. The actual collection was $730. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts payable for $500 E3-4 Continued Services were performed on account for a client for $890. Accounts receivable was debited for $890 and Revenue was credited for $89 A payment of $65 for telephone charges was recorded as a debit to office expense for $65 and a debit to cash for $65 When the Unearned Revenue account was reviewed, it was found that $225 of the balance was earned prior to June 30 A debit posting to wage expense of $670 was omitted A payment on account for $206 was credited to cash for $206 and credited to accounts payable for $260 A dividend of $575 was debited to wage expense for $575 and credited to cash for $575 E3-5...
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510chapter3fall2009afterclass9172009 - Accounting Cycle...

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