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Accounting Cycle

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Accounting Cycle
Justin McKibben
ACC/421
July 1, 2013
Ric Hedges

Accounting Cycle Houston Federal Credit Union is a financial institution in Sugar Land, TX and is responsible for providing financial services for its members. The accounting cycle at the organization is a typical cycle of any standard financial institution. The procedures of the accounting cycle must be in the guidelines set forth by GAAP. The employees of the organizations accounting department confirm with the rules and standards within GAAP, and each employee is responsible for certain areas of accounting. The organization currently uses accounting software called Symitar Episys, which is controlled by Jack Henry & Associates. They are responsible for serving more than 500 credit unions in servicing every area of the organization as well as accounting programs specified for completing the daily and monthly accounting processes. The accounting cycle for each period begins with the collection and analysis of transactions from the organizations day-to-day activities. Transactions are collected and recorded and are prepared to be posted to the appropriate general journal ledger accounts for proper documentation. Once the transactions are prepared, the appropriate journal entries are made to the correct ledger accounts. Each entry must consist of two or more entries, which the debits and credits must match other the entry is not balanced and cannot be posted. These entries can describe the organizations recording of liabilities, assets, equity, income, revenue, or expense. After the journal entries are posted to the appropriate ledger accounts, a trial balance is prepared. The trial balance is responsible for matching the total debits and credits for the organizations ledger accounts (Accounting-Simplified, 2013). If an out of balance or discrepancy is identified within the

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