Lesson One: How to Journalize Business Transactions
Before we dive right in, let’s review the general steps of the accounting cycle. As a note, these steps may differ slightly from your textbook, so please be sure to compare this resource to your textbook’s presentation of the accounting cycle.
- Journalize general journal entries for business transactions throughout the accounting period
- Post each journal entry to the general ledger
- Prepare an unadjusted trial balance
- Journalize adjusting entries
- Post each adjusting entry to the general ledger
- Prepare an adjusted trial balance
- Prepare the company’s financial statements
- Journalize closing entries
- Post closing entries to the general ledger
- Prepare a post-closing trial balance
In this lesson, we will review the first step of the accounting cycle: journalize general journal entries throughout the accounting cycle. If you previously completed our Basics of Journal Entries series, some of the content from this lesson may seem familiar. If that is the case, feel free to skip ahead to the Test Your Understanding section of this lesson.
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Test Your Understanding
Congratulations!
It looks like you’ve mastered this lesson. Move on to Lesson Two:
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