1 / 4

The Accounting Cycle: A Mini Case

Learn about the importance of accounting in entrepreneurial ventures and how to implement the accounting cycle in a business plan. This mini-case covers steps such as analyzing transactions, journalizing, posting, preparing financial statements, and more.

mcnamaras
Download Presentation

The Accounting Cycle: A Mini Case

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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), 18-25. • Presentations & Curriculum prepared by: • Allen Kitchel, Ph.D. • Assistant Professor • Business & Marketing Teacher Education • University of Idaho • akitchel@uidaho.edu

  2. Introduction • Entrepreneurship Units & Business Plan projects. • 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. 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

More Related