Completing The Accounting Cycle Completing The Accounting Cycle
Completing The Accounting Cycle Completing The Accounting Cycle
Completing The Accounting Cycle Completing The Accounting Cycle
Accounting Cycle
Chapter 4
Post to Accounts
Adjust Accounts
Close Accounts
Prepare
Financial Statements
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The Accounting Worksheet
• Used to help move data from the trial
balance to the financial statements
• An internal document – not financial
statement
30 Depreciation Expense,
Equipment 100
Accumulated Depreciation,
Equipment 100
Income Summary
200 500
Bal 300
Revenues – Expenses =
Net Income
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Four Closing Entries
Entry 3: Close Income Summary to Capital
Entry 4: Close Withdrawals to Capital
Capital
1,000 Beginning balance
100 300
1,200 Ending balance
Long-term Assets
• Equipment Long-term liabilities
• Buildings • None
• Accumulated depreciation
Different Formats of
the Balance Sheet
• Account Format
• Report Format