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When preparing a trial balance worksheet, what step would Tom complete next if he has already prepared a trial balance, adjusted entries and prepared an adjusted trial balance
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When preparing a trial balance worksheet, what step would Tom complete next if he has already prepared a trial balance, adjusted entries and prepared an adjusted trial balance

User Sebastian Helzer
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1 Answer

4 votes

Answer:

He must prepare the income statement.

Step-by-step explanation:

The last entries of the trial balance are temporary accounts that belong to the income statement. Tom should focus on them after finishing the adjusted trial balance. After he prepares the income statement, then he can proceed to close all the temporary accounts and calculate retained earnings.

User Chris Wallis
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