ACO01 - Lecture 5 - Completing the Accounting Cycle [Compatibility Mode]

ACO01 - Lecture 5 - Completing the Accounting Cycle [Compatibility Mode]

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1 Completing the Accounting Cycle ACO01 Financial Accounting for Business Dr. Anh Nguyen Lecture 5 7. Prepare financial statements 8. Close 9. Prepare post closing trial balance STEPS IN THE ACCOUNTING CYCLE 1. Analyse transactions 2. Journalize the transactions 3. Post to ledger accounts 4. Prepare a trial balance 5. Journalize and post adjusting entries 6. Prepare adjusted trial balance
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2 4 Learning Objective Describe and prepare closing entries. Explain why temporary accounts are closed each period. Temporary Accounts Revenues Income Summary Expenses Dividends Permanent Accounts Assets Liabilities Retained Earnings Temporary and Permanent Accounts Account Title Account No. ### Date Item Post. Ref. Debit Credit Balance Debit Credit Real Accounts
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