Explain each step of the accounting cycle. Describe at least one transaction that would occur at the company you selected in each of these steps.

The accounting cycle refers to the series of steps followed by accountants to record, analyze, and report financial transactions of a company. While the specific steps may vary slightly from company to company, the general accounting cycle includes the following steps:

1. Analyze Transactions: In this step, accountants examine business transactions to determine their impact on the financial statements. For example, at a retail store, a transaction could be the sale of a product.

2. Journalize: After analyzing the transactions, accountants record them in the general journal. Each transaction is recorded using the double-entry accounting system, where every debit has a corresponding credit and vice versa. In the case of our retail store, the journal entry for a sale transaction could be a debit to the accounts receivable account and a credit to the sales revenue account.

3. Post to the Ledger: In this step, accountants transfer the journal entries to individual accounts in the general ledger. This helps in keeping a record of each account's balance. For instance, in our retail store, the journal entry for the sale transaction would be posted to the accounts receivable and sales revenue accounts in the general ledger.

4. Prepare Trial Balance: A trial balance is a list of all the general ledger accounts and their balances to ensure that debits equal credits. This step helps in detecting any errors that might have occurred during the journalizing and posting process.

5. Adjusting Entries: Adjusting entries are made at the end of an accounting period to record transactions not yet entered and to ensure that revenues and expenses are properly recognized. For our retail store, an adjusting entry could be made to record accrued interest income on a loan.

6. Prepare Financial Statements: In this step, accountants create the financial statements, which include the income statement, balance sheet, and statement of cash flows. These statements provide an overview of the company's financial performance and position. For our retail store, the financial statements would show the sales revenue, accounts receivable, and net income.

7. Closing Entries: At the end of the accounting period, temporary accounts, such as revenue and expense accounts, are closed or zeroed out. This is done by transferring their balances to the retained earnings account. For example, in our retail store, the sales revenue account would be closed by transferring its balance to the retained earnings account.

8. Post-Closing Trial Balance: This is a final trial balance prepared after the closing entries have been made. It verifies that all accounts have been properly closed and allows accountants to check the accuracy of the closing process.

Overall, these steps together form the accounting cycle, ensuring that all financial transactions are accurately recorded, analyzed, and reported for a company's decision-making and reporting needs.