ACC 290 Week 4 Learning Team Reflection Summary

Week Four Reflection Summary 
Week three was very informative.  The team members’ knowledge has continued to increase in accounting.  The team members learned about preparing closing entries, reversing entries, and a post-closing trial balance.  In addition, the team members gain knowledge about preparing a financial statement worksheet, preparing a classifiedincome statement, retained earnings statement, and balance sheet.
The closing journal entries are important in the practice of accounting because at the end of the accounting period it helps zero the balances of the temporary accounts, and transferring the balances to the permanent accounts.  On the other hand, some companies perform reversing entries to make sure that they record their revenues in the period they earned them and that they recognize their expenses in the period they incur.  Companies execute reversing entries on the first day of an accounting period to remove some adjusting entries made at the end of the previous accounting period.  This process is optional; however, it proves that there is no double counting of revenues or expenses, which makes sure everything is accurate.
The financial statement worksheet is a way of summarizing accounting information.  Companies use the financial statement worksheet to prepare financial statements and save time. Basically, the financial statement worksheet contains multiple columns used to transfer accounting data from trial balance to financial statements. The financial statement worksheet is used by accountants and companies to have accounting information in a summarized manner.
Companies prepare their financial statements after they figure the adjusted trial balance.  They prepare their incomestatement from the revenue and expense accounts.  The retained earnings statement uses the retained earnings account, dividend account, and the net income from theincome statement.  Assets, liability, and stockholders’ equity accounts are reported in the balance sheet.  The retained earnings from the ending balance in the retained earnings statement is also used in the balance sheet.  These financial statements are a good way for a company to report their assets, liabilities, expenses, and revenues.  This information is important to different people like stockholders’, lenders, creditors, managers, and employees.
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