Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 615

Financial Statements

Lesson 18.7 Review of the Accounting Cycle:

Putting it all Together (cont’d)

Step 6 of the accounting cycle: You would review the financial statements for errors and analyze the infor-

mation reported in the financial statements. For now, all that you need to remember is that the four most

common methods for analyzing financial results are horizontal, vertical, ratio, and industry analyses. We’ll

take a close look at each of these different financial analysis methods in Unit 11.

Step 7 of the accounting cycle: You would prepare the closing entries. Here are the closing entries that

you would create:

Journal Voucher 0009 - Closing Entry 1

Chapter 18

Student Guide

Mrs. King’s Interiors

Journal Voucher

NO:0009

Office: __________________________ Month: _________________ Year: ___________

Ref.

No. Description

General

Ledger

Account

Debit Credit

JE9 Design Services

Rent Expense

Utilities Expense

Depreciation Expense

Income Summary

To close the revenue and expenses to the

Income Summary account for accounting

period ending December 31, 20YY

410

510

520

530

330

8,000.00

500.00

200.00

360.00

6,940.00

Column Totals 8,000.00 8,000.00

Prepared by: __________________________________ Date: ______________

Authorized by: _________________________________ Date: ______________

December 20YY

Anita Job

ABC Owner

12/31/20YY

12/31/20YY

1234 Office