EX 4-20 Steps in the accounting cycle

Rearrange the following steps in the accounting cycle in proper sequence:

a. Transactions are analyzed and recorded in the journal.
b. An unadjusted trial balance is prepared.
c. Transactions are posted to the ledger.
d. Adjustment data are assembled and analyzed.
e. An adjusted trial balance is prepared.
f. Adjusting entries are journalized and posted to the ledger.
g. An optional end-of-period spreadsheet is prepared.
h. A post-closing trial balance is prepared.
i. Financial statements are prepared.
j. Closing entries are journalized and posted to the ledger.


Answers:
a. Transactions are analyzed and recorded in the journal (Step 1).
c. Transactions are posted to the ledger (Step 2).
b. An unadjusted trial balance is prepared (Step 3).
d. Adjustment data are assembled and analyzed (Step 4).
g. An optional end-of-period spreadsheet is prepared (Step 5).
f. Adjusting entries are journalized and posted to the ledger (Step 6).
e. An adjusted trial balance is prepared (Step 7).
i. Financial statements are prepared (Step 8).
j. Closing entries are journalized and posted to the ledger (Step 9).
h. A post-closing trial balance is prepared (Step 10).