1. The Accounting Cycle: A Mini Case
Original concept published as:
Yopp, M., & Kitchel, A. (2007). Incorporating an Accounting Unit in a Business Plan Project. NBEA Business Education Forum, 61(3),
Presentations & Curriculum prepared by:
Allen Kitchel, Ph.D.
Assistant Professor
Business & Marketing Teacher Education
University of Idaho

2. Introduction Entrepreneurship Units & Business Plan projects. Thesis
Business Plans typically include: an executive summary, a marketing plan, a management plan, a financial plan, and a strategic plan.
Advocating a financial planning unit addressing the accounting system.
Thesis
Accounting is crucial to the success of any entrepreneurial venture or business project.
Entrepreneurs with an understanding of the accounting cycle and double-entry accounting are advantaged.

3. The Accounting Cycle & the Mini-case
Identify type of business
Create a Chart of Accounts
Create General Ledger accounts
Use a Multicolumn Journal for original entry
Generate transactions for a fiscal period (one month in this example).
Journalize transactions.
Post Journal entries to General Ledger
Record & post Adjusting entries
Record & post Closing entries
Prepare a Post-closing Trial Balance
Prepare Financial Statements
Balance Sheet, Income Statement, & Statement of Owner’s Equity.
Eight-Column Worksheet
Trial Balance, Adjusting Entries, Income Statement & Balance Sheet

4. Steps in the Accounting Cycle
(1) Analyze Transactions
(9) Prepare Post-closing Trial Balance
(2) Journalize Transactions
Steps in the Accounting Cycle
(3) Post to Ledger Accounts
(8) Journalize & Post Closing Entries
(4) Prepare Trial Balance
(7) Prepare Financial Statements: Income Statement, Balance Sheet & Owner’s Equity Statement
Worksheet
Tool for preparing Financial Statements
(5) Journalize & Post Adjusting Entries
(6) Prepare Adjusted Trial Balance