Completing the Accounting Cycle

Learning objectives

After studying this chapter, you should be able to:

Summarize the steps in the accounting cycle.
Prepare a work sheet for a service company.
Prepare an income statement, statement of retained earnings, and balance sheet using information contained in the work sheet.
Prepare adjusting and closing entries using information contained in the work sheet.
Prepare a post-closing trial balance.
Describe the evolution of accounting systems.
Prepare a classified balance sheet.
Analyze and use the financial results – the current ratio.