1. Accounting cycle (I): Journalizing posting and preparing Trial Balance
Chapter 2
Accounting 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 cycle
E.g. a month ,a quarter or half a year, a year
Fiscal year/accounting year: twelve consecutive months

3. Post entries to the ledger accounts. Journalize transactions.
The Accounting Cycle
Post 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.
Liabilities
Equity
Assets = +
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

6. Exercise
Problem 1 on page 53.

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.
Cash
Accounts Payable
The 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 numbers
The first digit indicates the major account classification
The second digit indicates financial statement classification
The third digit indicates detailed account classification

10. Posting
Sorting out and copying the information from the journal to the ledger account.

11. Posting Journal Entries to the Ledger Accounts4

12. Posting Journal Entries to the Ledger Accounts4

13. Cross –reference
3) Insert the page number of the journal in the posting reference column of the ledger account
4) Insert the ledger account number in the posting reference column of the journal
Example 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.
Liabilities
Equity
Assets = +
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.

16. Exercise
Problem 1 on page 53.

17. End of Chapter 2 4