Question

Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation.

a. Journalize and post adjusting entries
b. Prepare an unadjusted trial balance
c. Prepare an adjusted trial balance
d. Prepare financial statements

Answer 1

The correct order of preparation for adjusting entries is: 1. Prepare an unadjusted trial balance, 2. Journalize and post adjusting entries, 3. Prepare an adjusted trial balance, 4. Prepare financial statements

Step-by-step explanation:

Prepare an unadjusted trial balance

Journalize and post adjusting entries

Prepare an adjusted trial balance

Prepare financial statements