1. Appendix A: Comprehensive Review Problem

2. Appendix A provides a comprehensive review problem
Appendix A provides a comprehensive review problem. Students perform each step of the accounting cycle using GAAP.

3. Prepare a trial balance to summarize transactions during a year.
Prepare an adjusted trial balance to reflect period or year end adjustments (AJEs).
Prepare financial statements
Income statement
Balance sheet
Statement of cash flows (SCF).
Statement of stockholders’ equity

4. Trial Balance
A trial balance is a list of all accounts and their balances, based on the debit (left) and
credit (right) schema:
Assets == Liabilities + Owners’ Equity
plus revenues
less expenses

5. Adjusted Trial Balance
Period and year end adjustments are necessary to bring the books up to date.
An adjusted trial balance is a list of all accounts and their balances after adjustments.
Financial statements are prepared from adjusted trial balance amounts, using meaningful sequencing, titles and subtotals, etc. It’s an art!

6. Financial Statements Prepared From Adjusted Trial Balance
Income Statement
Balance Sheet
Statement of Stockholders’ Equity
Statement of Cash Flows (SCF)
Statement of Comprehensive Income (optional)