Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition1 Chapter 1 The Accounting Cycle Ch1

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition2 The Accounting Cycle This tutorial guides you through the eight steps of the accounting cycle. The accounting cycle includes ongoing and yearly activities. For more detailed instructions, refer to Section 1.4 of the Accounting 1 textbook. You may wish to review the accounting cycle as you progress through the course and encounter the steps in the cycle.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition3 The Accounting Cycle Four of the steps occur in the outer ring.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition4 The Accounting Cycle 1. Transaction occur.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition5 The Accounting Cycle 2. Transactions are recorded in the journal.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition6 The Accounting Cycle 3. Journal entries are posted to ledger accounts.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition7 The Accounting Cycle 4. Trial balance and interim financial statements prepared.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition8 The Accounting Cycle These outer ring activities are ongoing and cyclical.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition9 The Accounting Cycle Four of the steps occur in the inner ring.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition10 The Accounting Cycle 5. The worksheet is prepared.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition11 The Accounting Cycle 6. Formal financial statements are prepared.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition12 The Accounting Cycle 7. Ledger accounts are adjusted and closed.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition13 The Accounting Cycle 8. The post-closing trial balance is prepared.

Chapter 1 – The Accounting Cycle l DRAFT | Accounting 1, 7 th Edition14 The Accounting Cycle The cycle is complete and it begins to repeat itself.