completing the accounting cycle: worksheet

Question 1

worksheet

Answer 1

optional working paper that can be used to simplify the preparation of financial statements

Question 2

step 1

Answer 2

enter the unadjusted trial balance

Question 3

step 2

Answer 3

enter adjustments

Question 4

step 3

Answer 4

prepare the adjusted trial balance

Question 5

prepare the adjusted trial balance

Answer 5

debit + debit = debit
credit + credit = credit
debit + credit = debit, if total debits > total credits
debit + credit = credit, if total credits > total debits

Question 6

step 4

Answer 6

extend adjusted trial balance amounts to financial statement columns

Question 7

step 5

Answer 7

enter net income and balance the financial columns

Question 8

generates revenues

Answer 8

increase the shareholder’s equity account with a credit

Question 9

generates a profit

Answer 9

generates more sales than expenses