Lesson 5 Completing the Accounting Cycle. Task Team of FUNDAMETAL ACCOUNTING School of Business, Sun Yat-sen University. Outline. Describe the preparation of adjusted trial balance Describe and prepare a worksheet and describe its usefulness.
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Lesson 5Completing the Accounting Cycle
Task Team of
School of Business, Sun Yat-sen University
4. Unadjusted trial balance
Start the next cycle
7. Prepare finance statements
6. Adjusted trial balance
Let’s start from the worksheet
Enter the accounts and unadjusted trial balance
Entry the adjusting entries’
Entry the adjusted trial balance
Entry Adjusted Amounts to Income Statement Columns
Entry Adjusted Amounts to Balance sheet Columns
The closing process applies only to temporary accounts.
The closing process does not apply to permanent accounts.
The entries :
Dr. Sales Revenue61000
Interest Revenue 2917
Cr. Income Summary 63917
Dr. Income 86600
Cr. Cost of Sales 30000
Operating Expense 56600
Dr. Income Summary 22683
Cr. Retained Earnings 22683
The entries are:
Dr. All Revenue
Cr. Income Summary
The entries are:Dr. Income Summary Cr. All Expenses
The End of Lesson 5