Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 618

Financial Statements

Lesson 18.7 Review of the Accounting Cycle:

Putting it all Together (cont’d)

Step 8 of the accounting cycle: You would post all of the closing entries to the general ledger, as well as

prepare and review the final adjusted trial balance to verify that the adjusted trial balance is correct and

ready to begin the accounting cycle again.

Mrs. King’s Interiors Adjusted Trial Balance

Period ending – December 31, 20YY

Beginning

Balance

$0.00

Date

General

Ledger

Account

Description of Transaction Debit Credit Balance

1 12/31/20YY 110 Cash $30,550.00

2 12/31/20YY 120 Accounts Receivable $2,500.00

3 12/31/20YY 130 Supplies $10,650.00

4 12/31/20YY 131 Less: Accumulated Depreciation $360.00

5 12/31/20YY 210 Accounts Payable, Furniture World $6,500.00

6 12/31/20YY 310 Capital, Mrs. King $30,500.00

7 12/31/20YY 320 Owner’s Draw, Mrs. King $0.00

8 12/31/20YY 410 Revenue, Design Services $0.00

9 12/31/20YY 510 Rent Expense $0.00

10 12/31/20YY 520 Utility Expense $0.00

11 12/31/20YY 530 Depreciation Expense $0.00

12 12/31/20YY 311 Retained Earnings $6,340.00

13

14

Total $43,700.00 $43,700.00 $0.00

Chapter 18

Student Guide