Running head: ACCOUNTING CYCLE PAPER 1

Accounting Cycle Paper

Vernon C. Daniels Jr
ACC/421
May 5, 2014
Walfyette Powell














Running head: ACCOUNTING CYCLE PAPER 2
Accounting Cycle Paper

In this paper, I will discuss the accounting cycle of EchoStar Corp. as I know it to be. Ten
steps makeup the accounting cycle. Those ten steps are identifying and recording, journalizing,
posting, trial balance, adjusting entries, adjusted trial balance, preparing financial statements,
closing, post-closing trial balance, and if needed, reversing entries.
I am personally involved in only one aspect of the process in regards verifying that
invoiced materials or services have been received.
Identifying and Recording
Analyzing transactions is the first step in the accounting cycle. In order to accomplish
thising, what will be recorded first must be defined. Company personnel changes may be
important, but they are not a recordable transaction in the accounting cycle, however, companies
should report all cash sales or purchases regardless of the dollar amount. Debit and credits are
the transactions recorded. EchoStar utilizes associate accounts to handle this process. Those
associate accounts are also responsible for accounts payable, accounts bookkeeping, and
receivable duties. They are responsible for receiving, processing and recording customer invoices
using accounting software and systems.
Journalizing
Journalizing is the second step in the accounting cycle and it involves entries that affect a
companys assets, liabilities, and equities. The entries are assigned to a companys asset, liability,
equity revenue, or expense (Kieso, Weygandt, & Warfield, 2012). EchoStars associate accounts
also handle this task as well under the oversight of accounting supervisors.

Running head: ACCOUNTING CYCLE PAPER 3
Posting
Posting is the third step in the accounting cycle. Posting is the process of reassigning
journal entries to the ledger accounts and involves four steps. Step one would be to enter the
relevant columns of the debited accounts with date, journal page, and debit amount shown in the
journal into the ledger. The second step would be to write the account number that corresponds to
the debit that was posted in the reference column. The third step would be to enter in the relevant
columns of the credited accounts the date, journal page and credit amount shown from the
journal into the ledger. The last step would be to write the account number that corresponds to
the amount that was posted in the reference column of the journal (Kieso, Weygandt, & Warfield,
p.96, 2012). This is yet another aspect handle by EchoStars associate accountants utilizing
account software called Oracle.
Trial Balance
The trial balance, which is the fourth step, is a list of the account balances. Trial balances
are usually done at the completion of an accounting period. Trial balances are listed with debits
in one column and credits in the other with totals. The totals should match, if not then there is an
error that must be corrected. EchoStar's accounting supervisors handle this step utilizing Oracle
and make the necessary corrections.
Adjusting Entries
Adjusting entries is the fifth step in the accounting cycle and is also done at the
completion of the accounting period. Adjusting entries are vital to reporting the relevant assets,
liabilities, and equity. The account supervisors handle this task at EchoStar with input from the
associate.

Running head: ACCOUNTING CYCLE PAPER 4

Adjusted Trial Balance
The sixth step in the accounting cycle is adjusted trial balance. This step ensures the
debits are still equal to the credits after making the period end adjustments. This step is
performed by the account supervisors at EchoStar. The adjusted trial balance shows how
financial events have had an effect throughout the accounting period.
Preparing Financial Statements
Preparing financial statements is the next step in the accounting cycle. The adjusted trial
balance is utilized to prepare financial statements and this step is accomplished by the accounting
managers at EchoStar utilizing Oracle.
Closing
Closing is the eighth step in the accounting cycle which involves closing temporary
accounts by reducing their balances to zero. This step is accomplished by reassigning the income
statement accounts to the income summary account. EchoStars accounting managers, with input
from the associate accountants, handle this step.
Post-closing Trial Balance
Posting-closing trail balance is the ninth step in the accounting process. The process
consists of only the asset, liability, and equity accounts (Kieso, Weygandt, & Warfield, p. 116,
2012). This too is handled be the accounting managers.
Reversing Entries
The last step of the accounting cycle is reversing entries. EchoStars accounting managers
handle this step. A company makes a reversing entry at the beginning of the next accounting
Running head: ACCOUNTING CYCLE PAPER 5
period; this entry is the exact opposite of the related adjusting entry made in the previous period
(Kieso, Weygandt, & Warfield, 2012, p. 116).





















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References
Kieso, D.E., Weygandt, J.J., & Warfield, T.D. (2012). Intermediate Accounting (14th ed.).
Retrieved from The University of Phoenix eBook Collection database.