WeekfourReflection Team C Essay

Submitted By MRMOFFETT37
Words: 940
Pages: 4

Running head: WEEK FOUR REFLECTION

Week Four Reflection
UOP
Accounting/290
August 08, 2012

Week Four Reflection
In week 3, Team C learned how to prepare closing entries, reverse entries, post-closing trail balances, and prepare the needed financial statements for the accounting period or year. The first step in the accounting cycle is to prepare the trial balances by analyzing all the transactions that have posted to the t-accounts throughout the period. Once you have these balances, the second step is to make appropriate adjustments to the entries and make your closing entries to the temporary accounts. The temporary accounts will always need to be closed out by making the closing entries to zeros to start the new accounting period. This process will need to take place every accounting period and the accounts will always start with a zero balance. Third step is to prepare the new adjusted trial balance which summarizes the period’s revenues and expenses for that period. The balances from the adjust trial balance will need to be transferred to the balance statement and the income statement.
The balances from the Adjusted Trail Balance are carried to the Income statement and Balance sheet Columns. These columns will need to be added up and should be equal. These columns will show the “Net Income” and “Net Loss” for that period. The worksheet is very useful in recording the adjusting and closing entries and will help with preparing the financial statements. The totals from the worksheet could be transferred straight to the Income Statement and Balance sheet to show the totals. Depending on what type of accounts they are will depend on if they will be on the Income Statement or the Balance Sheet columns. All expenses will always be on the income statement and all assets, liabilities, Capital, and withdrawals will be on the balance sheet. At this point, the retained earnings sheet is ready to be prepared. The retained earnings will show the retained earnings from the prior year’s totals, plus the net loss or the net income from the income statement, and will subtract any dividends for that period. That will be your retained earnings for that year or period. This amount will then be placed on the retained earnings statement for the next year and so forth.

Samples of worksheets
Sample Preparing Closing Entries, Reversing Entries, and Post-closing trial balance

Trial Balance

August 31, 2010

Cash

$ 10,072
Accounts Receivable

29,314
Prepaid Insurance

5,340
Delivery Supplies

14,700
Office Supplies

2,460
Land

15,000
Building

196,000
Accumulated Depreciation–Building

$ 53,400
Trucks
103,800

Accumulated Depreciation–Trucks

30,900
Office Equipment
15,900

Accumulated Depreciation–Office Equipment

10,800
Accounts Payable

9,396
Unearned Lockbox Fees

8,340
Mortgage Payable

72,000
N. Reed, Capital

128,730
N. Reed, Withdrawals
30,000

Delivery Service Revenue

283,470
Lockbox Fees Earned

28,800
Truck Drivers’ Wages Expense
120,600

Office Salaries Expense
44,400

Gas, Oil, and Truck Repairs Expense
31,050

Interest Expense
7,200

$625,836
$625,836

Sample of Financial Statement Worksheet
Work Sheet for the year ended 12.31.2012 Account Title
Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet

Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
1
Cash
37080

37080

37080 2
Accounts receivable
52320

i-600
51720

51720 3
Notes receivable
24000

24000

24000 4
Merchandise inv. 1.105
31650

31650 31650

5
Prepaid insurance
4800

c-2500
2300

2300 6
Prepaid rent
4395

b-2800
1595

1595 7
Store supplies
1650

f-1000
650

650 8
Furniture & fixture
13500

13500

13500 9
Acc-deprec. - furniture 3000 g-1350 4350

4350
10
Office equipment
11700

11700

11700 11
Acc-deprec. - equip. 4500 h-2340 6840

6840
12
Accounts