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Accounting Cycle Paper

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Accounting Cycle Paper
ACC421
June 3, 2013

Accounting Cycle Paper
Although I work for a major corporation, Walgreens, I have nothing to do with the accounting department or the cycle. I will however use this paper to explain the accounting cycle as well as the people that would be involved within the cycle.
Generally the people involved in the accounting cycle would be record-keepers, accounting clerks; financial managers as well as staff accountants all have a hand in the parts of the accounting cycles. Bookkeepers and accounting clerks are generally the ones that record the entries and prepare statements for financial managers and staff accountants to approve.
The first step of the accounting cycle would be to identify and analyze the transaction and events that need to be accounted for. Even though the generally accepted accounting principles (GAAP) has guidelines there are no rules to what events or transaction a company is required to record. A company should record every sale or purchase no matter how big or small it is.
Once these transactions or events have been analyzed, they are recorded in the next step which is journalizing the transactions. There are several different places these transactions are recorded. Some of these places are the general journal, cash receipts journal, cash disbursements journal, purchases journal, sales journal and other special journals depending on the company (Kieso, Weygandt, & Warfield, 2012). Then these transactions will be posted into the general ledger which usually occurs monthly and subsidiary ledgers which are usually done daily.
Once this is done a trial balance is prepared. After the trial balance is done, adjustments are made for such things as accruals, prepayments as well as any estimated items. Once these adjustments have been made, an adjusted trial balance is prepared. When the adjusted trial...

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