Accounting information system

Accounting information system - The Accounting Information...

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The Accounting Information System I. The Accounting Cycle A. Identification and recording B. Journalizing C. Posting D. Trial balance E. Adjusting entries (end of period) (work-) F. Adjusted trial balance (sheet ) G. Preparing financial statements H. Closing (end of fiscal year) I. Post-closing trial balance J. Reversing entries (beginning of new fiscal year, optional) II. Basic Accounting Equation III. General Journal – a chronological record of transactions. Journal Entries are recorded in the journal. IV. Adjusting Entries A. Recorded at the end of the period before statements are prepared to update the transactions for changes 1. Revenues - recorded in the period in which they are earned. 2. Expenses - recognized in the period in which they help to produce revenue. 3. Adjusting entries - needed to ensure that the revenue recognition and matching principles are followed. Account Title Ref . Debit Credit J an. 3 Cash 100 100,000 Common stock 300 100,000 10 Building 130 150,000 Note payable 220 150,000 Date
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Accounting information system - The Accounting Information...

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