Ch 3 Review

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Chapter 3 (REVIEW-Self study chapter) After studying this chapter, you should be able to: Understand basic accounting terminology. Explain double-entry rules. Explain how transactions affect the accounting equation. Identify the steps in the accounting cycle and the steps in the recording process. Explain the reasons for and prepare adjusting entries. Explain how the type of ownership structure affects the financial statements. Prepare closing entries and consider other matters relating to the closing process. Prepare a 10-column work sheet and financial statements. After studying Appendix 3A, you should be able to: Identify adjusting entries that may be reversed. THE ACCOUNTING INFORMATION SYSTEM The Accounting…show more content…
Analyse the transaction 2. Journalize the transaction 3. Post the transaction to general ledger (and sub-ledgers) accounts 4. Prepare the (unadjusted) trial balance 5. Prepare necessary adjusting journal entries 6. Prepare the (adjusted) trial balance 7. Prepare financial statements 8. Prepare closing journal entries for the year 9. Prepare post-closing trial balance (optional) 10. Prepare reversing entries (optional) Recording a Transaction: Shares are issued for $3,000 cash DR. cash $3000 CR. Common shares $3000 Preparation of Trial Balance Preparation of Trial Balance (look @ ppt) From the

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