Question

From the following list of steps in the accounting cycle, identify what two steps are missing: Transactions are analyzed and recorded in the journal. An unadjusted trial balance is prepared. Adjustment data are assembled and analyzed. An optional end-of-period spreadsheet is prepared. Adjusting entries are journalized and posted to the ledger. An adjusted trial balance is prepared. Closing entries are journalized and posted to the ledger. A post-closing trial balance is prepared. Select the steps in the accounting cycle in their proper order in order and include the two missing steps.

Answer 1

Answer:

The Accounting Cycle refers to the process of recording and analyzing the transactions of a business into it's books so that proper financial statements may be recorded and used.

It happens in 10 steps which are;

1. Transactions are analyzed and recorded in the journal.

2. Transactions are posted to the ledger. ( Missing)

3. An unadjusted trial balance is prepared.

4. Adjustment data are assembled and analyzed.

5. An optional end-of-period spreadsheet (work sheet) is prepared.

6. Adjusting entries are journalized and posted to the ledger.

7. An adjusted trial balance is prepared.

8. Financial statements are prepared. (Missing)

9. Closing entries are journalized and posted to the ledger.

10. A post-closing trial balance is prepared.

Step 2

After posting transactions to their journals, the transactions go to the General ledger.

Step 8.

Using the details from the adjusted trial balance, the Financial Statements can then be prepared with the correct figures.