ch04 - ACCT 1710 Introduction To Financial Accounting...

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ACCT 1710 Introduction To
ACCT 1710 Introduction To
Financial Accounting
Financial Accounting
Dr. HU Bingbing
Dr. HU Bingbing
HKBU
HKBU
Chapter4 Completing the Accounting
Chapter4 Completing the Accounting
Cycle
Cycle

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1. The required steps in the accounting
cycle.
2. Prepare a worksheet.
3. Preparing and posting closing entries.
4. Preparing a post-closing trial balance.
5. The classified statement of financial
position.
Study Objectives

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1. Analyze business transactions
1. Analyze business transactions
2. Journalize the
transactions
2. Journalize the
transactions
6. Prepare an adjusted trial
balance
6. Prepare an adjusted trial
balance
7. Prepare financial
statements
7. Prepare financial
statements
8. Journalize and post
closing entries
8. Journalize and post
closing entries
9. Prepare a post-closing
trial balance
9. Prepare a post-closing
trial balance
4. Prepare a trial balance
4. Prepare a trial balance
3. Post to ledger accounts
3. Post to ledger accounts
5. Journalize and post
adjusting entries
5. Journalize and post
adjusting entries
STEPS IN THE
ACCOUNTING CYCLE
W
o
r
k
s
h
e
e
t
W
o
r
k
s
h
e
e
t

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STEPS IN THE ACCOUNTING
CYCLE

Steps performed in sequence and repeated in each
accounting period

Step 1-3 occur daily

Step 4-7 performed at the end of each accounting periods

Step 8&9 prepared at the end of annual accounting
period

Step 4-6 incorporated in the worksheet

3 trial balance are prepared

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
A worksheet is a multiple-column form
used in the adjustment process and in
preparing financial statements .

A working tool for the accountant

Not a permanent accounting record

The use of a
worksheet is optional .

Prepared at the end of accounting
period after all transactions have been
journalized and posted.
WORKSHEET

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FORM AND FIVE STEPS of A
WORKSHEET

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
A worksheet brings together in one place
the information needed to prepare formal
financial statements and to record
adjusting and closing entries.

A worksheet helps to avoid omitting
important data or steps in the accounting
cycle.

If worksheet is used, financial statements
are prepared from the worksheet.

No need to prepare a separate trial balance.
BENEFITS OF
A WORKSHEET

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PREPARING A WORKSHEET
1. PREPARING A TRIAL BALANCE on WS
15,200
2,500
600
5,000
4,000
900
28,700
28,700
No separate TB
will be made if
worksheet is
used.
Trial balance amounts come
directly from ledger accounts.
Include all
accounts with
balances.

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PREPARING A WORKSHEET
2. ENTER THE ADJUSTMENTS
a 1,500
b 50
Additional
accounts are
inserted right
below the trial
balance totals.
Enter adjustment
amounts, total
adjustments
columns,and check
for equality.
Adjustments Key:
(a) Supplies Used.