For each of the items below, indicate whether the transaction increased equity, decreased equity, or had no effect on equity.
Purchased supplies for cash
Sold merchandise on account
Paid cash dividends
Paid salaries & wages
Bought equipment by issuing a 90-day note
Sold 10,000 shares of common stock
Place the following steps in the accounting cycle in the order in which they are performed.
- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Prepare a Post-Closing Trial Balance
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Record Reversing Entries
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Record Closing Entries
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Journalize Transactions
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Prepare Financial Statements
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Prepare an Adjusted Trial Balance
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Record Adjusting Entries
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Analyze Transactions
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Post Transactions to the Ledger
- 1.
2. 3.
4. 5.
6. 7.
8. 9.
10.
Prepare a Trial Balance
| Particulars | Increased Equity | Decreased Equity | No effect on equity | ||
| Purchased supplies for cash | No effect on equity | ||||
| Sold Merchandise on account | Increased Equity | ||||
| Paid cash dividend | Decreased Equity | ||||
| Paid salaries and wages | Decreased Equity | ||||
| Bought equipment by issuing a 90 day note | No effect on equity | ||||
| Sold 10,000 shares of common stock | Increased Equity | ||||
| Steps in Accounting cycle | |||||
| 1 | Analyze transactions | ||||
| 2 | Journalize transaction | ||||
| 3 | Post transactions to ledger | ||||
| 4 | Reversing entries | ||||
| 5 | closing entries | ||||
| 6 | Record adjusting entries | ||||
| 7 | Post closing trial balance | ||||
| 8 | Prepare trial balance | ||||
| 9 | Prepare a adjusted trial balance | ||||
| 10 | Prepare financial statement | ||||
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