12/2/2020 [Solved] Chapter 3, Problem 3.

1 - Financial & Managerial Accounting (18th Edition)

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Chapter 3, End of Chapter, Brief Exercises, Exercise 3.1

Part a Part b

Here is the full solution including the answer and explanation.

숥
쇮쇮 Journalize transactions 쇷 쇹

숥
쇮쇮 Post transaction data to the ledger 쇷 쇹

숥
쇮쇮 Prepare a trial balance 쇷 쇹

숥
쇮쇮 Make end-of-period adjustmentsend-of-period adjustments 쇷 쇹

숥
쇮쇮 Prepare an adjusted trial balancean adjusted trial balance 쇷 쇹

숥
쇮쇮 Prepare nancial statements nancial statements 쇷 쇹

숥
쇮쇮 Journalize and post closing entries 쇷 쇹

숥
쇮쇮 Prepare an after-closing trial balance 쇷 쇹

Explanation

Journalize transactions
The transactions are recorded in the journal or subsidiary books as and when they take place.

Post transaction data to the ledger

The transactions recorded in the journal or subsidiary books are transferred in the respective accounts opened in the ledger.

Prepare a trial balance

The list of balances of ledger balances of each and every account is prepared in the form of a trial balance to verify whether
the total of debit balances is equal to the total of credit balances.

Make end-of-period adjustmentsend-of-period adjustments

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12/2/2020 [Solved] Chapter 3, Problem 3.1 - Financial & Managerial Accounting (18th Edition)

Adjustments are made to ensure that the nancial statements only contain information relevant to the accounting period.

Prepare an adjusted trial balancean adjusted trial balance

The adjusted trial balance is prepared to ensure that the debit and credit balances of ledger are equal after adjustments.

Prepare nancial statements nancial statements

The nancial statements are prepared to ascertain the nancial position of a company at the end of the accounting period.

Journalize and post closing entries

The closing entries are journalized and posted by closing all temporary accounts and recording the net increase or decrease in
the owners' equity.

Prepare an after-closing trial balance

The last step is to prepare an after-closing trial balance to check the equality of debit and credit balances after journalizing the
closing entries.

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쇲 DQ, Ex 15 BE, Ex 3.2 쇰

Textbook Solutions / Financial & Managerial Accounting / Ch 3, End of Chapter, Ex 3.1

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