Accounting Cycle of a Service

Business and Bank

Reconciliation
Prepared by Alexandro Ponteras
At the end of this chapter , you will be able
to:
Enter additions, changes, and deletions to the charts
of accounts
Enter and correct general journal transactions
Enter adjusting entries
Display account, journal, ledger, and financial
statement reports
Generate graphs
Complete bank reconciliation
Generate and post closing entries
Accounting cycle
It includes all accounting activities, beginning with
entering transactions and ending with closing.
It is usually completed each fiscal period.
Fiscal period
A.k.a accounting period
It is a regular interval of time for which a business
analyzes its financial information
Journal
It is a record of the debit and credit parts o each
transactions recorded in date sequence
Posting
It is the process of updating the ledger account
balances with all debits and credits
Adjusting Entries
Changes entered to update general ledger account at
the end of the fiscal period