W2_Outline - i Why do we make closing entries ii What types...

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Accounting 306 Intermediate Accounting I Workshop 2 Outline I. Define the following terms a. Debit b. Credit c. Double-entry accounting d. Accounting equation II. Explain each step in the accounting cycle a. Analyze transactions b. Journalize entries in general journal c. Post entries to general ledger d. Prepare unadjusted trial balance i. What is the purpose of a trial balance? ii. What types of errors will be detected by the trial balance? What types of errors will not be detected by the trial balance? e. Journalize adjusting entries in general journal i. Why do we make adjusting entries?
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ii. Name some accounts that likely need adjustment at the end of an accounting period. f. Post adjusting entries to general ledger g. Prepare adjusted trial balance h. Prepare financial statements i. Income statement ii. Statement of retained earnings iii. Balance sheet iv. Statement of cash flows i. Journalize closing entries in general journal
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Unformatted text preview: i. Why do we make closing entries? ii. What types of accounts are closed? Define a “nominal” account. Define a “real” account. iii. What is the Income Summary account? j. Post closing entries to general ledger k. Post-closing trial balance l. Reversing entries (optional) i. Why do some companies use reversing entries? ii. What does it mean to “make a reversing entry?” iii. What types of adjusting entries are reversed? What types of adjusting entries are not reversed? III. Cash-basis accounting versus accrual-basis accounting a. Under the cash basis, when do you recognize revenue? When do you recognize expenses? b. Under the accrual basis, when do you recognize revenue? When do you recognize expenses? c. Which method conforms with GAAP? Why?...
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