week 6 CheckPoint The Nine Steps of the Accounting Cycle

week 6 CheckPoint The Nine Steps of the Accounting Cycle -...

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Brittney Bryson April 14, 2011 XACC/280 Week 6: Checkpoint: The Nine Steps of the Accounting Cycle The nine steps of the accounting cycle, are: 1) Analyzing Business Transactions, then step two is journalizing the transactions by entering them into the journal. Step three is Posting the transactions into the ledger, Step four you preparing a trial balance to prove the mathematical equality of debits and credits after posting, Step five is Journalizing and posting the adjusting entries which are needed to ensure that the revenue recognition and matching principles are flowed. In step six you
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Unformatted text preview: prepare an Adjusted Trial Balance which again helps to prove the mathematical equality of debits and credits after adjustments have been made. Step seven you prepare the financial statements. Step eight is Journalizing and Posting the Closing Entries where the temporary accounts are closed; such entries formally recognize in the ledger the transfer of net income (or net loss) and dividends to retained earnings, and step nine is Preparing a Post-Closing Trial Balance which proves the equality of the permanent account balances that are carried forward into the next accounting period....
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