Unit 3 - Statement of Financial Position

Accounting cycles have multiple steps that must be followed to take in we ar addressing the themeing needs properly. The comp whatsoever I am using is c tout ensembleed The Clarksburg Mission, a unsettled shelter who buys a trade of supplies to help those in need. 1) recognize a relations and right on diagnose the solution and produce the source of the document. simulation: A exchange buy was do for $10,000 of supplies. The handbill is received by the accountant. 2) Analyze the transaction and conclude the amount and determine which accounts atomic number 18 going to be changed by this and the direction of the change. Example: An invoice for the purchase of story is for $100 on creed. We need to make up ones fountainhead which of the accounts are affected: supplies, cash, inventory, accounts payable, etc. 3) journal Entries, Transactions are put down in a journal as a conviction and debit. A Journal entry is do under Equipment and cash as well as whatsoever othe r account that is affected. Example:Debit CreditSupplies10,000Cash10,0004) Posting to ledger. Journal entries are transferred into the capable T- Accounts. Example: An entry is made to the T-Account for cash. CASHOctober 15 25,000November 1 10,0005) trial Balance is the calculation of the trades union of credit and the sum of debits, which is made in order to compare them and hold up the results are equal. Example: The account should verify all the entries and sum up the debits and credits so that they match. Caution must be used is a discrepancy is found with the new entries. 6) Adjusting Entries. accrued and deferred items should be adjusted, all entries journalized and posted to T-Accounts in the ledger. Example: If at that place are any accrued salaries or interests that need to be adjusted, it should be through with(p) at this time for preparation of the monetary statements. 7) Adjusted... If you want to grasp a full essay, or der it on our website: OrderEssay.net

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