Accounting

Accounting Cycle for A Service Business

By Rom Antony Day

Revised 1/5/2008; 2007

• Analyze financial transactions into debits and credits.

• Journalize.

• Post.

• Prepare Worksheet. Totals from accounts general ledger.

• Prepare financial statements. (From worksheet; note that owner’s capital to be included is the current capital only )

• Journalize adjusting and closing entries. Adjusting entries obtained from worksheet; info for closing entires is found in the Income Statement & Balance Sheet columns of the worksheet.

• Post adjusting and closing entries.

• Prepare post-closing trial balance.