Note: Zero plagiarism will be excepted because it will be passed through safe assign software.
Prepare 6 pages report that lays out the steps of the accounting cycle, explaining what each step does, why it is important to the success of a business, and what financial information is produced at the end of the cycle. Specifically, the following critical elements must be addressed: Accounting Cycle Workbook
a) Record all journal entries. Be sure that all information is recorded accurately.
b) Post entries to appropriate ledger accounts. Ensure all information is posted accurately.
c) Prepare unadjusted trial balance. Ensure unadjusted trial balance is prepared accurately.
d) Interpret trial balance and make appropriate end of period adjustments.
e) Post adjusted entries and prepare the adjusted trial balance.
f) Apply adjusted trial balance and prepare financial statements.
g) Close all temporary income statement accounts and create closing entries.
h) Prepare the post-closing trial balance for the next accounting period.
i) Cancel any applicable temporary adjusting entries and prepare reversing entries.
Accounting Cycle Report
a) Identify the steps of the accounting cycle and provide a description of each step.
b) What role does each step play in the success of a business?
c) How could the omission of a step impact the success of a business? What strategies could be used to avoid this?
d) What are the major financial statements that come out of the accounting cycle? Why are they important?