Describe the steps in the accounting cycle.

Here is the completed accounting cycle:

2.1.1
The accounting cycle begins with business transactions occurring.

$$\boxed{\text{Transactions}}$$

2.1.2
Transactions are evidenced by source documents (e.g., invoices, receipts), which provide the information needed for recording.

$$\boxed{\text{Source Documents}}$$

2.1.3 Journals
Transactions are then recorded chronologically in books of original entry, known as journals.

2.1.4
Information from the journals is then transferred (posted) to the individual accounts in the ledger (or general ledger).

$$\boxed{\text{Ledger}}$$

2.1.5
After posting to the ledger, a trial balance is prepared to ensure that total debits equal total credits.

$$\boxed{\text{Trial Balance}}$$

2.1.6 Financial Statements
Finally, financial statements (like the Income Statement and Balance Sheet) are prepared from the adjusted trial balance to summarize the financial performance and position of the business.