A Song About the Accounting Cycle

Accounting can be as fun as you make it to be. See how this girl make it happen!

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LYRICS:
Transactions occur everyday in a business
The accounting cycle has begun
Gather your source documents and file them away

Record transactions in the general journal
Put debits first and indent the credits
Don’t forget an explanation or you’ll get confused

Once a month post the journal entries to the ledger
Just forward the balance if the page gets filled
Start a new page; show everyone you’re skilled

Do a trial balance of the ledger
And if it doesn’t balance you have made a mistake
But don’t be worried if you’ve mastered the error tests

The fiscal period is now at its end
The worksheet shows the columns to be done
Trial balance, adjustments, income and balance sheet

Net income or net loss? That’s the question
The income statement can give the answer
Revenues minus expenses is all it takes

Insurance, late invoices and supplies
All require adjusting entries
Record them on the worksheet then journalize

The nominal accounts need to be closed out
Revenue, expenses, income and drawings
Are the four closing entries

The last step is the post-closing trial balance
But if the debits don’t equal credits
Then it’s a good thing you have mastered the error tests

And if you didn’t, well…I feel bad for you