LESSON 16-3 Preparing a Post-Closing Trial Balance 4/24/2017 LESSON 16-3 Preparing a Post-Closing Trial Balance

POST-CLOSING TRIAL BALANCE page 496 1. Heading 1 2. Accounts that have balances 3 2 3. Debit balances 4 4. Credit balances 5. Word Totals 6. Totals 7. Double lines 5 6 7 LESSON 16-3

ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION page 497 1. Source documents are checked, and transactions are analyzed. 1 2 2. Transactions are recorded in journals. 3. Journal entries are posted to the accounts payable ledger, the accounts receivable ledger, and the general ledger. 3 4 5 4. Schedules of accounts payable and account receivable are prepared from the subsidiary ledgers. 5. A work sheet is prepared from the general ledger. (continued on next slide) LESSON 16-3

ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION page 497 6. Financial statements are prepared. 7. Adjusting and closing entries are journalized from the work sheet. 9 8. Adjusting and closing entries are posted to the general ledger. 9. A post-closing trial balance of the general ledger is prepared. 8 7 6 (continued from previous slide) LESSON 16-3