Chapter 1 The Accounting Cycle 1 Chapter 1

The Accounting Cycle This tutorial guides you through the eight steps of the accounting

The Accounting Cycle Four of the steps occur in the outer ring. 3 Chapter

The Accounting Cycle 1. Transaction occur. 4 Chapter 1 – The Accounting Cycle l

The Accounting Cycle 2. Transactions are recorded in the journal. 5 Chapter 1 –

The Accounting Cycle 3. Journal entries are posted to ledger accounts. 6 Chapter 1

The Accounting Cycle 4. Trial balance and interim financial statements prepared. 7 Chapter 1

The Accounting Cycle These outer ring activities are ongoing and cyclical. 8 Chapter 1

The Accounting Cycle Four of the steps occur in the inner ring. 9 Chapter

The Accounting Cycle 5. The worksheet is prepared. 10 Chapter 1 – The Accounting

The Accounting Cycle 6. Formal financial statements are prepared. 11 Chapter 1 – The

The Accounting Cycle 7. Ledger accounts are adjusted and closed. 12 Chapter 1 –

The Accounting Cycle 8. The post-closing trial balance is prepared. 13 Chapter 1 –

The Accounting Cycle The cycle is complete and it begins to repeat itself. 14

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Chapter 1 The Accounting Cycle 1 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle This tutorial guides you through the eight steps of the accounting cycle. The accounting cycle includes ongoing and yearly activities. For more detailed instructions, refer to Section 1. 4 of the Accounting 1 textbook. You may wish to review the accounting cycle as you progress through the course and encounter the steps in the cycle. 2 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle Four of the steps occur in the outer ring. 3 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 1. Transaction occur. 4 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 2. Transactions are recorded in the journal. 5 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 3. Journal entries are posted to ledger accounts. 6 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 4. Trial balance and interim financial statements prepared. 7 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle These outer ring activities are ongoing and cyclical. 8 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle Four of the steps occur in the inner ring. 9 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 5. The worksheet is prepared. 10 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 6. Formal financial statements are prepared. 11 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 7. Ledger accounts are adjusted and closed. 12 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle 8. The post-closing trial balance is prepared. 13 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition

The Accounting Cycle The cycle is complete and it begins to repeat itself. 14 Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition