Financing and Accountng Block 1 Chapter 3 Summary
Accounting cycle
Consists of eight specifc steps
1. Journalize (record) transactons
2. Post each journal entries to a ledger (grootboek)
3. Preparing the trial balance
4. Making and of period adjustments
5. Preparing and adjusted trail balance
6. Preparing fnancial statements
7. Journalizing and postng closing entries
8. Preparing an aferrclosing trail statement
The grey and italics will be addressed in chapter 4 and 5
Double- entry accounting
Avery transactons is recorded by equal dollar
amounts of debits and credits
The journal The journal is a chronological (day-by-day) record of business
transactons
Example: journal entries
Posting journal entries to the legger (posten van een journaal post naar grootboe
re ening)
Postng involve copying into the ledger accounts informaton that already has been
recorded in the journal
Accounting cycle
Consists of eight specifc steps
1. Journalize (record) transactons
2. Post each journal entries to a ledger (grootboek)
3. Preparing the trial balance
4. Making and of period adjustments
5. Preparing and adjusted trail balance
6. Preparing fnancial statements
7. Journalizing and postng closing entries
8. Preparing an aferrclosing trail statement
The grey and italics will be addressed in chapter 4 and 5
Double- entry accounting
Avery transactons is recorded by equal dollar
amounts of debits and credits
The journal The journal is a chronological (day-by-day) record of business
transactons
Example: journal entries
Posting journal entries to the legger (posten van een journaal post naar grootboe
re ening)
Postng involve copying into the ledger accounts informaton that already has been
recorded in the journal
