The accounting cycle is to make a company's financial statements for a certain period. In general, finance starts from transactions up to making company financial statements followed by financial journals.
Accounting Companies are companies that buy goods from suppliers and sell goods to consumers without changing the form of goods. Examples are shops and supermarkets. The second activity is an effort to buy daily necessities from and resell to consumers.
The accounting cycle of a company is no different from a service company. Both service companies and companies, all transactions must be recorded in journals and then periodically recorded into accounts in ledgers.
General Journal Transaction Identification
identification of transactions that occur in the company and account account. Transaction transactions are sales transactions. As a seller you have handed over official items and have earned money through payment from the buyer. Then we can identify such transactions as online sales transactions.
A special ledger or commonly referred to as a subsidiary ledger.
A ledger is part of a general ledger that aims to further detail data in one account. Recording of certain accounts (account account and debt account) is then used.
Post to ledger
Large book posts are moving data from general journals into ledgers. Apart from general journals, book data information for companies also comes from special journals. In this case it is called a big book post
Report on Cost of Goods Sold
If the company programs a continuous recording, the price automatically determines the price that applies when the transaction, when making a sales journal while recording the cost of goods sold. the calculation of the HPP will be considered as a component of the income statement that will be presented in the financial statements.
Creating a Balance Sheet (Trial Balance)
The information used to make the balance sheet is derived from the general ledger, which is every final balance in each account. Debit and credit positions must be balanced if they are not balanced, meaning there are errors when recording from the ledger
Adjusting journal entry
Adjusting journal adjustments is the result of transactions that affect a number of company accounts and sometimes the presence of a new account. Examples of transactions that occur in a trading company are usually store rentals that are due, costs that still have to be paid. Depreciation of company inventory.
After Adjustment Balance Sheet
The next stage is the adjustment of the trial balance with an adjustment journal that produces a balance sheet after adjusting. Preparing a Financial Report The creation of a financial report is made with the aim of facilitating the search for information about the company's financial position such as the state of assets, debt, and company capital. The information used in the financial statements comes from the balance sheet after adjusting.
Create a Cover Journal
After the financial report is complete, the next step is to make a closing journal of the accounts contained in the income statement, namely income and cost accounts. Balance Sheet After Closure This stage is an adjustment between the trial balance and the closing journal. Why does it need to be adjusted? ... Because it is to record back accounts that have changed both balance and account.
Reversing Journal
In certain conditions there is no need to make a reversing journal because the reversing journal is made only for certain accounts. For example, for income transactions received in advance, where at the time of sale is recorded as income or for transactions paid in advance (accounts receivable).
That is the stage of the trading company accounting cycle
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