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1. Start with the beginning balances
2. Analyze and journalize transactions as the occur
3. Post journal entries to the accounts
> Unadjusted Trial Balance<
4. Compute the unadjusted balance in each account and prepare the unadjusted trial balance
> Worksheet <
5. Enter the unadjusted trial balance on the worksheet and complete the worksheet (optional)
6. Journalize and post adjusting entries
> Adjusted Trial Balance <
7. Prepare the adjusted trial balance
8. Prepare the financial statements
- Income Statement -
- Statement of Retained Earnings -
- Balance Sheet -
9. Journalize and post the closing entries
- Close Revenues -
- Close Expenses -
- Close Income Summary -
- Close Dividends -
10. Prepare the post-closing trial balance.