Summary Ch 4 Completing the Accounting Cycle - Financial Accounting with International Financial Reporting Standards - FAC2

Completing the Accounting
Cycle
Chapter Number Chapter 4



📖 Table of Contents

Outline
4.1 The Worksheet
Steps in Preparing a Worksheet
4.2 Closing the Books
Preparing Closing Entries
How to Close Revenue/Expense to Income Summary Account
Posting Closing Entries
Preparing a Post-Closing Trial Balance
4.3 The Accounting Cycle and Correcting Entries
4.4 Classified Statement of Financial Position
Intangible Assets / “Other Assets”
Property, Plant, and Equipment / “Fixed Assets”
Long-Term Investments
Current Assets
Equity
Non-Current Liabilities
Current Liabilities




Completing the Accounting Cycle 1

, 4.1 The Worksheet




Steps in Preparing a Worksheet
1. Prepare a Trial Balance on the Worksheet

2. Enter the Adjustments in the Adjustments Columns

3. Enter Adjusted Balances in the Adjusted Trial Balance Columns

4. Extend Adjusted Trial Balance Amounts to Appropriate Financial Statement
Columns

5. Total the Statement Columns, Compute the Net Income (or Net Loss), and
Complete the Worksheet




Completing the Accounting Cycle 2