Question
4. Part Four-Identifying the Accounting Cycle for a Service Business Arrange the series of accounting activities listed for the accounting cycle for a service business. Indicate the sequence of the e steps by entering a number from 1 to 8 to the left of each activity. (p.228) Accounting Activity square A work sheet, including a trial balance, is prepared from the general ledger. square Transactions, from information on source documents, are recorded in a journal. square Source documents are checked for accuracy, and transactions are analyzed into debit and credit parts. square Adjusting entries are journalized and posted to the general ledger. square Finandal statements are prepared from the work sheet. square Closing entries are journalized and posted to the general ledger. square A post-closing trial balance of the general ledger is prepared. square Journal entries are posted to the general ledger.
Answer
4.7
(300 Votes)
Colin
Master · Tutor for 5 years
Answer
### 1. Source documents are checked for accuracy, and transactions are analyzed into debit and credit parts.### 2. Transactions, from information on source documents, are recorded in a journal.### 3. Journal entries are posted to the general ledger.### 4. A work sheet, including a trial balance, is prepared from the general ledger.### 5. Adjusting entries are journalized and posted to the general ledger.### 6. Financial statements are prepared from the work sheet.### 7. Closing entries are journalized and posted to the general ledger.### 8. A post-closing trial balance of the general ledger is prepared.
Explanation
## Step 1: Source Documents### Source documents are checked for accuracy, and transactions are analyzed into debit and credit parts.## Step 2: Record Transactions### Transactions, from information on source documents, are recorded in a journal.## Step 3: Posting### Journal entries are posted to the general ledger.## Step 4: Work Sheet Preparation### A work sheet, including a trial balance, is prepared from the general ledger.## Step 5: Adjusting Entries### Adjusting entries are journalized and posted to the general ledger.## Step 6: Financial Statements### Financial statements are prepared from the work sheet.## Step 7: Closing Entries### Closing entries are journalized and posted to the general ledger.## Step 8: Post-Closing Trial Balance### A post-closing trial balance of the general ledger is prepared.