1. Introduction to Accounting Preparing for a User’s Perspective
Overview of the Accounting Cycle
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store

2. Statement of Cash Flows
General-Purpose Financial Statements
Names
Equations
Balance Sheet
Assets = Liabilities + Equity
Statement of Shareholder Equity
Beg. Equity + Adds – Subs = End. Equity
Income Statement
Revenues – Expenses = Net Income
Statement of Cash Flows
Op. Cash Flows + Invest Cash Flows + Finance Cash Flows + Beg. Cash = End. Cash
Footnote disclosures

3. General-purpose financial statements
The Accounting Cycle
Source documents
Accounting cycle
Recurring procedures and thought processes used by entities to convert economic data from source documents into general purpose financial statements
General-purpose financial statements

4. Steps in the Accounting Cycle
1) Identify
2) Analyze
Steps in the Accounting Cycle
a) What accounts?
b) Increase or decrease?
c) Amount $?
d) Debit or credit?
3) Record
5) Prepare*
Date
Account
Debit
Credit
4/8
Accts Receivable
100
Consult. Revenue
Trial Balance
DR (CR) 20 50 80
Etc.
(150) $0
Cash
Accounts Receivable
Inventory
Etc.
Accts Payable
Total
Acct. Rec
Cons. Rev.
4) Post
100
100
* Will include preparation of financial statements

5. The Full Accounting Cycle
Original Transaction Entries
Identify
Analyze
Record
Post
Prepare
Pre-adjusted TB
Adjusting Entries
Identify
Analyze
Record
Post
Prepare
Adjusted TB
Financial Statements
Closing Entries
Identify
Analyze
Record
Post
Prepare
Post-Closing TB

6. DEF Co.
Statement of Cash Flows
For the year ended 12/31/X2
DEF Co.
Balance Sheet
As of 12/31/X2
Operating Act $40
Cash $30
Investing Act (5)
Accounts Receivable
Financing Act (15)
Inventory
Change in cash $20
Vehicles
Beginning cash $10
Equipment
Building
Ending cash $30
Land
Ttl Assets $380
DEF Co.
Income Statement For the year ended 12/31/X2
DEF Co.
Statement of Retained Earnings For the year ended 12/31/X2
Accounts Payable $20
Notes Payable
Ttl Liabilities $ 70
Revenues $500
Beginning Ret. Earnings $50
Capital Contributions $220
Net Income
Expenses (400)
Retained Earnings
Dividends (60)
Ttl Shareholder Equity $310
Net Income $100
Ending $90
Ttl Liab & Share Equity $380

7. The Accounting Cycle and You
Perform it
Manage it
Program it
Audit it
Certify it
Accounting = the language of business

8. Original Transaction Entries
Summary
Original Transaction Entries
Identify
Analyze
Record
Post
Prepare
Pre-adjusted TB
Adjusting Entries
Identify
Analyze
Record
Post
Prepare
Adjusted TB
Financial Statements
Closing Entries
Identify
Analyze
Record
Post
Prepare
Post-Closing TB

9. Additional Accounting Cycle Videos
(7m:53s) YouTube video titled: lecture 6 - the accounting cycle
(57m:15s) YouTube video titled: Chap 04 Lecture - The Accounting Cycle

10. Introduction to Accounting Preparing for a User’s Perspective
Overview of the Accounting Cycle
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store