Lecture06 2010.09.25 PostClass

Lecture06 2010.09.25 PostClass - Lecture 6 Accounting Cycle...

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1 Lecture 6 Accounting Cycle
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2 Goals of Today’s Class • Examples of adjusting entries • Depreciation • Effect of financial statement errors • Discuss the accounting cycle – Adjusting Entries – Closing Entries – Unadjusted Trial Balances
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3 Accounting Cycle
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4 • At the end of the period, income accounts are closed back into the retained earnings. • all revenues and gains must eventually be included as increases in RE and all expenses and losses must eventually be included as decreases in RE Recap: Permanent vs. Temporary Accounts
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5 The Accounting Cycle What is Accounting Cycle? The sequence of accounting procedures used each period to record transactions and events and to prepare financial statements.
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6 Transaction occurs AND document is generated Journal entry is entered into the Journal - Journalizing Transfer ( Post ) entries from the Journal to T-Accounts Prepare Unadjusted Trial Balance Make Adjusting Entries to Trial Balance Prepare Adjusted Trial Balance Closing Process Prepare other Financial Statements These happen every day at the time of the transaction These happen at the end of each period The Accounting Cycle Prepare Income Statement
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This note was uploaded on 12/18/2010 for the course ACCT 101 taught by Professor Armstrong during the Fall '09 term at UPenn.

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Lecture06 2010.09.25 PostClass - Lecture 6 Accounting Cycle...

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