The Accounting Cycle
The 8 Step Guide To Accounting
Steps 1 and 2 of the accounting cycle.
3rd step in the accounting cycle is posting transactions.
Preparing a work sheet, 4th step in accounting.
Usually, your first assessment of the trial balance shows that the journals aren’t in balance.
Adjustments are made to change the balance of assets and to adjust for one-time payments (such as supplies) that should be renewed on a monthly basis to more accurately match monthly expenses with monthly revenues. After you record adjustments, you create another trial balance to see if the accounts effected are now in balance.