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chapter 4 is completing the accounting cycle the process of adjusting the accounts and preparing the financial statements is one of the most important in accounting the adjusted information flows into the financial statements in the following ways so the revenue and expense accounts flow into the income statement the owneramp;#39;s capital account and the owneramp;#39;s drawing account flow into the statement of owneramp;#39;s equity as well as net income and the asset and liability accounts as well as the end-of-period owneramp;#39;s equity flow into the balance sheet okay going into each one in more depth the income statement first the income statement is prepared directly from the adjusted trial balance columns so it involves revenues and expenses so revenues could be fees earned rent revenue interest revenue etc expenses could be wages expense supplies expense rent expense miscellaneous expenses etc and expenses are typically listed in order of size so the largest expense would
