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.