Answer:
- Analyze and journalize transactions as they occur
- Start with beginning account balances
- Post journal entries to the accounts
- Compute the unadjusted balance in each account and prepare the unadjusted trial balance
- Enter the unadjusted trial balance on the worksheet and complete the worksheet
- Journalize and post adjusting entries
- Prepare the adjusted trial balance
- Journalize and post the closing entries
- Prepare the post-closing trial balance
- Prepare the financial statements
Explanation:
First we enter the data. Then, we compound all the transactions into a single papper (trial balance) we adjust this papper (adjusting entries) and then we prepare to close the accounting cycle (closing entries) so it can start over (post-closing balance = beginning balance at the next cycle