Select a company that you are familiar with from the transportation industry. •C

ID: 2366017 • Letter: S

Question

Select a company that you are familiar with from the transportation industry.

•Collect the 4 main financial statements from credible sources (e.g., nationally syndicated newspapers, peer-reviewed journals, investor relations, Web sites or annual reports.
•Create a flow chart that illustrates the steps in the accounting cycle.
•Include any other relevant information in the chart that would apply within the steps.
When reviewing the financial statements, focus your attention on the expenses and revenues incurred by the company

Explanation / Answer

ACCOUNTING CYCLE: The accounting process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance is called the accounting cycle. The accounting cycle's primary goal is to create accurate financial statements.Often, the accounting cycle is referred to as the book-keeping cycle. The accounting process has very pre-defined steps, ten to be exact and each step should be followed inorder to ensure the accounting cycle flowchart produces accurate information. ACCOUNTING CYCLE FLOWCHART: 1. Identify the transaction. 2. Analyze the transaction. 3. Journal Entry 4. Post to Ledger 5. Trial Balance 6. Adjusting Journal Entries 7. Adjusted Trial Balance 8.Financials 9.Closing Entries 10. Closing Trial Balance. Step 1 is the identification of the transaction. Step 2 is the analyze the transaction. A little, which is the name of the accounting equation element recorded in the account. A space for recording increase in the amount of the element. A space for recoding decrease in the amount of the element. Step 3 is journalizing. Using the rules of debit and credit, transactions are initiallyl entered in a record called a journal. Step 4 is a transaction is first recorded in a journal. Periodically, the journal entries are transferred to the accounts in the ledger. The process of transferring the debits and credits from the journal entries to the account is called posting. step5 is Trial Balance. Errors may occur in posting debits and credits from the journal to the ledger.Oneway to detect such errors is by preparing a trial balance. Double-entry accounting requires that debits must always equal credits. The trial balance verifies this equality. step 6 is Adjusting Process: The analysis and updating of accounts at the end of the period before the financial statements are prepared is called the adjusting process. The journal entries that bring the accounts up to date at the end of the accounting period are called adjusting entries. Step 7 is the Adjusted Trial Balance. After the adjusting entries have been posted , an adjusted trial balance is prepared. The adjusted trial balance verifies the equality of the total debt and credit balances before the financial statements are prepared. Step 8 is Financial statements step 9 is Closing entries. The entries that transfer the balances of temporary accounts to the owner's capital account. Step 10 is the post closing Trial Balance. This is prepared after the closing entries have been posted. The four main financial statements are Income Statement, statement of Owner's Equity, Balance Sheet and statement of cash flows. Income Statement: A summary of the revenue and expenses for a specific period of time, such as a month or a year. Statement of owner's equity: A summary of the changes in the owner's equity that have occurred during a specific period of time, such as a month or a year. Balance Sheet: A list of the assets, liabilities, and owner's equity as of a specific date , usually at the close of the last day of a month or a year. Statement of cash flows: A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year. ACCOUNTING CYCLE: The accounting process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance is called the accounting cycle. The accounting cycle's primary goal is to create accurate financial statements.Often, the accounting cycle is referred to as the book-keeping cycle. The accounting process has very pre-defined steps, ten to be exact and each step should be followed inorder to ensure the accounting cycle flowchart produces accurate information. ACCOUNTING CYCLE FLOWCHART: 1. Identify the transaction. 2. Analyze the transaction. 3. Journal Entry 4. Post to Ledger 5. Trial Balance 6. Adjusting Journal Entries 7. Adjusted Trial Balance 8.Financials 9.Closing Entries 10. Closing Trial Balance. Step 1 is the identification of the transaction. Step 2 is the analyze the transaction. A little, which is the name of the accounting equation element recorded in the account. A space for recording increase in the amount of the element. A space for recoding decrease in the amount of the element. Step 3 is journalizing. Using the rules of debit and credit, transactions are initiallyl entered in a record called a journal. Step 4 is a transaction is first recorded in a journal. Periodically, the journal entries are transferred to the accounts in the ledger. The process of transferring the debits and credits from the journal entries to the account is called posting. step5 is Trial Balance. Errors may occur in posting debits and credits from the journal to the ledger.Oneway to detect such errors is by preparing a trial balance. Double-entry accounting requires that debits must always equal credits. The trial balance verifies this equality. step 6 is Adjusting Process: The analysis and updating of accounts at the end of the period before the financial statements are prepared is called the adjusting process. The journal entries that bring the accounts up to date at the end of the accounting period are called adjusting entries. Step 7 is the Adjusted Trial Balance. After the adjusting entries have been posted , an adjusted trial balance is prepared. The adjusted trial balance verifies the equality of the total debt and credit balances before the financial statements are prepared. Step 8 is Financial statements step 9 is Closing entries. The entries that transfer the balances of temporary accounts to the owner's capital account. Step 10 is the post closing Trial Balance. This is prepared after the closing entries have been posted. The four main financial statements are Income Statement, statement of Owner's Equity, Balance Sheet and statement of cash flows. Income Statement: A summary of the revenue and expenses for a specific period of time, such as a month or a year. Statement of owner's equity: A summary of the changes in the owner's equity that have occurred during a specific period of time, such as a month or a year. Balance Sheet: A list of the assets, liabilities, and owner's equity as of a specific date , usually at the close of the last day of a month or a year. Statement of cash flows: A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year. The four main financial statements are Income Statement, statement of Owner's Equity, Balance Sheet and statement of cash flows. Income Statement: A summary of the revenue and expenses for a specific period of time, such as a month or a year. Statement of owner's equity: A summary of the changes in the owner's equity that have occurred during a specific period of time, such as a month or a year. Balance Sheet: A list of the assets, liabilities, and owner's equity as of a specific date , usually at the close of the last day of a month or a year. Statement of cash flows: A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.

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Select a company that you are familiar with from the transportation industry. •C

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