1. Review of the Accounting Cycle
General Journal daily and adjusting entries, impact on statements, subsidiary ledgers (AR,AP, NR,NP)

2. Steps in a manual accounting cycle
Enter daily transactions into the general journal, and post to subsidiary ledgers (AR,AP, etc.)
End of period, post to the general ledger
Prepare a trial balance from the general ledger (unadjusted trial)
End of period, If statements are needed, enter adjusting entries into general journal
Post to the general ledger
Prepare a trial balance from the general ledger (adjusted trial)
Prepare the income statement, balance sheet, and cash flow statement
At year-end, after the 12 month income statement and cash flow statement are prepared, and balance sheet, enter closing entries into the general journal
Post closing entries to the general ledger
Prepare a trial balance from the general ledger (post closing trial balance).

3. Daily journal entries Historical
Record events that affect the accounting equation
Often triggered by a source document
Recorded on journal paper (manual) or using data entry into general ledger software
Date, titles of accounts, debit, credit

4. Types of Adjusting Journal Entries -accruals and deferrals
Deferred expenses (Assets used up) – recognizes the cost of resources used to help run the business. Increases expenses and reduces assets
Deferred revenues (Earning the unearned) – recognizes the portion of money collected in advance from customers, that is currently earned. Increases revenues and reduces liabilities.
Accrued expenses – records services received that are not currently on the books (no source document). Increases expenses and liabilities (payables).
Accrued revenues – records services performed that are not currently on the books (no source document). Increases revenues and assets (receivables).

5. Closing Journal Entries
Once the 12 month yearly cycle is complete, needed to get ready for the next yearly cycle
Only temporary accounts (revenues, expenses, dividends) are closed out.
Updates retained earnings