EXERCISE 4-7
| Purpose: | (L.O. 1, 4) This exercise reviews the procedures involved in the accounting cycle when the two optional steps, a worksheet and reversing entries, are employed. |
Ten steps in the accounting cycle for a company which uses a worksheet and reversing entries are listed in random order below.
| _______ a. | Journalize and post closing entries. |
| _______ b. | Prepare financial statements from the worksheet. |
| _______ c. | Prepare a post-closing trial balance. |
| _______ d. | Balance the ledger accounts and prepare a trial balance on the worksheet. |
| _______ e. | Journalize and post adjustments made on the worksheet. |
| _______ f. | Record transactions in the journal. |
| _______ g. | Journalize and post reversing entries. |
| _______ h. | Post from journal to the ledger. |
| _______ i. | Complete the worksheet (adjusting entries, adjusted trial balance and extend amounts to financial statement columns). |
| _______ j. | Analyze business transactions. |
Instructions
Arrange the ten procedures carried out in the accounting cycle in the order in which they should be performed by numbering them “1,” “2,” and so forth in the spaces provided.
TIP: As you work through this exercise, concentrate on the logical progression and the flow of information in the data gathering process.
Get Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
