Accounting Cycle

Accounting Cycle

Accounting Cycle

The accounting cycle within an organization is a process that is used to achieve the functions of accounting for the business. Those functions include recording, identifying, and reviewing financial information. Each organization have its own way of executing the accounting cycle; however, large companies mainly share the same concept of the accounting cycle. Dollar General Corporation is a fortune 500 company which has been in business since 1939. Just as Dollar General has grown and evolved so, has the accounting cycle within the organization. Working as a store manager for the company a lot of information about the accounting process is only known within the buildings. However, a review of the accounting cycle will be reviewed which includes journalizing, posting, trial balance, adjusting entries, adjusted trial balance, financial statements, and closing. Two optional parts of the cycle are post closing-trial balance and revising entries.

Journalizing

Journalizing shows the debiting of one account from another account. Ever transaction is recorded in a journal which is the starting process for accounts. The entries are entered in order by date, and the amount is debited and credited to their respective amounts. For example, each store is given a budget for supplies and gas expenses. If the store manager at store 490 purchases supplies in the amount of $67, this fund would be debited from one account and credited into another.

Posting

Once journaling is conducted in the stores, the transactions created in the stores are posted in the accounts that it impacts which, is prepared or classified into groups such as assets, liabilities, and expenses that are found in the general ledger. By Dollar General posting transactions daily that could be shown in the stores systems to be matched with the proper invoice to be filed for later use, the store manager could easily find errors within the...