Presentation on theme: "Accounting cycle (I): Journalizing posting and preparing Trial Balance"— Presentation transcript:
1 Accounting cycle (I): Journalizing posting and preparing Trial Balance Chapter 2Accounting cycle (I): Journalizing posting and preparing Trial Balance日记账,过账和试算平衡表2
2 Accounting Cycle 会计循环a sequence of accounting procedures which are repeated continuously during each accounting period.Accounting period /fiscal period: any span of time covering a complete accounting cycleE.g. a month ,a quarter or half a year, a yearFiscal year/accounting year: twelve consecutive months
3 Post entries to the ledger accounts. Journalize transactions. The Accounting CyclePost entries to the ledger accounts.Journalize transactions.Complete a work sheet.Prepare trial balance.Journalize and post adjusting entries.Prepare financial statements.Journalize and post closing entries.Prepare post-closing trial balance.3
4 Steps in Journalizing = + Step 1: Examine source documents. LiabilitiesEquityAssets=+Step 2: Analyze transactions.Step 3: Record transactions in a journal.
5 The Journal(日记账)In an actual accounting system, transactions are initially recorded in the journal.( handout)4
7 Posting Journal Entries to the Ledger Accounts Posting (过账) involves copying information from the journal to the ledger accounts.4
8 Accounts are individual records showing increases and decreases. The Ledger(分类账)Accounts are individual records showing increases and decreases.CashAccounts PayableThe entire group of accounts is kept together in an accounting record called a general ledger(总分类账)Jill Jones, Capital
9 Chart of Accounts科目代码表 A official list of all the accounts and their account numbersThe first digit indicates the major account classificationThe second digit indicates financial statement classificationThe third digit indicates detailed account classification
10 PostingSorting out and copying the information from the journal to the ledger account.
11 Posting Journal Entries to the Ledger Accounts 4
12 Posting Journal Entries to the Ledger Accounts 4
13 Cross –reference3) Insert the page number of the journal in the posting reference column of the ledger account4) Insert the ledger account number in the posting reference column of the journalExample on page 45
14 Ledger Accounts After Posting This ledger format is referred to as a running balance (as opposed to simple T accounts).4
15 Steps in Processing Transactions Step 1: Examine source documents.LiabilitiesEquityAssets=+Step 2: Analyze transactions.Step 5: Prepare a trial balance.Step 4: Record the journal information in a ledger.Step 3: Record transactions in a journal.