Select a company that you are familiar with from the transportation industry.
•Collect the 4 main financial statements from credible sources (e.g., nationally syndicated newspapers, peer-reviewed journals, investor relations, Web sites or annual reports.
•Create a flow chart that illustrates the steps in the accounting cycle.
•Include any other relevant information in the chart that would apply within the steps.
As an AI language model, I can help you understand the process of collecting financial statements and creating a flow chart of the accounting cycle. However, I cannot collect the financial statements for you, as I don't have direct access to sources or the ability to browse the web. But don't worry, I'll guide you on how to gather the necessary information.
1. Selecting a Transportation Company:
Choose a transportation company that you are familiar with or interested in studying. Examples of well-known transportation companies include UPS, FedEx, Delta Air Lines, or DHL. You can also consider local or regional transportation companies.
2. Collecting Financial Statements:
To collect the four main financial statements (balance sheet, income statement, cash flow statement, and statement of shareholders' equity), follow these steps:
a. Visit the company's official website: Transportation companies usually have an investor relations section that provides access to their financial statements. Look for the "Investor Relations," "Financial Reports," or "Financial Information" section.
b. Check the annual report: Companies often publish their financial statements in the annual report, which can be found on their website. Look for a section such as "Financial Statements" or "Management Discussion and Analysis" in the report.
c. Search financial databases or credible sources: If the company's website does not have the required financial statements, you can explore financial databases like Bloomberg, Yahoo Finance, or Google Finance. You can also check credible financial news sources, nationally syndicated newspapers, or accounting journals for articles or publications that may contain the financial statements.
3. Creating a Flow Chart of the Accounting Cycle:
The accounting cycle consists of several steps involving the systematic recording, analysis, and reporting of financial transactions. Here are the general steps involved:
a. Identify and analyze transactions: In this step, all relevant financial transactions are identified and analyzed for their impact on the company's financial position.
b. Record journal entries: Once transactions are identified, they are recorded using journal entries in accordance with generally accepted accounting principles (GAAP).
c. Post to the general ledger: Journal entries are then transferred to the general ledger, which is a master record of all the company's accounts.
d. Prepare an unadjusted trial balance: An unadjusted trial balance is prepared by listing all the account balances to ensure debits equal credits.
e. Adjusting entries: Adjusting entries are made to correct errors or update accounts based on accruals, deferrals, or estimates. These entries ensure that revenues and expenses are recognized in the correct accounting period.
f. Prepare an adjusted trial balance: After adjusting entries, an adjusted trial balance is prepared to verify that the accounts are in balance.
g. Prepare financial statements: Using the adjusted trial balance, financial statements such as the income statement, balance sheet, statement of cash flows, and statement of shareholders' equity are prepared.
h. Close the books: Temporary accounts such as revenue, expenses, and dividends are closed at the end of the accounting period to start fresh for the next period.
i. Prepare post-closing trial balance: The post-closing trial balance ensures that all permanent accounts have correct balances after the closing entries are made.
When creating your flow chart, you should include these steps in sequential order. You can use software like Microsoft PowerPoint, Word, or specialized flowchart software to create your flow chart. Use appropriate symbols to represent each step, connecting them logically with arrows to illustrate the flow of the accounting cycle.
Remember, this is a general overview, and the accounting cycle may vary depending on the company or industry. It is advisable to refer to accounting textbooks or resources specific to your chosen transportation company to ensure accuracy.
I hope this helps you in your task!