Accounting Cycle and Sample Financial Statements

Accounting Cycle

Select a company that you are familiar with from the transportation industry.
Collect the 4 main financial statements from credible sources (newspaper, 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.

Source used for financial statement examples:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDA3OTd8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

Solution Summary

This solution contains a flow chart showing the major steps included in the accounting cycle. Also included are examples of financial statements for 2008 and 2009 for Southwestern Airlines, Co. The following statements are shown: Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Owner's Equity. The detail step-by-step explanation of the accounting cycle as well as the example financial statements should provides students with a clear understanding of these basic accounting concepts.