What is the third step in the accounting cycle? Analyze source documents and record business transactions in a journal. Prepare a post-closing trial balance . Journalize and post the closing entries. Prepare a trial balance.

Question

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Answer 1

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000Direct labor 313,000Factory overhead 650,700The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000Work-in-process 41,400Finished goods 25,600The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

Answer 2

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Answer 3

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Answer 4

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Answer 8

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer 12

Answer to Problem 1QY

The correct answer is option (d).

Answer 13

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.