Question

Using a worksheet to prepare financial statements requires a series of steps. Place the following steps in the correct order:

1) Year-end adjustments are entered on the worksheet.
2) Each column is properly totaled and checked.
3) Financial statements and closing entries are prepared.
4) The trial balance is listed with the current accounts and balances.

Answer 1

The correct sequence to prepare financial statements using a worksheet is: 1) list the trial balance, 2) enter year-end adjustments, 3) total and check columns, then 4) prepare financial statements and closing entries.

Step-by-step explanation:

Preparing financial statements using a worksheet involves a systematic process. The correct order of steps is as follows:

1. Trail balance is listed with the current accounts and balances.
2. Year-end adjustments are entered on the worksheet.
3. Each column is properly totaled and checked.
4. Financial statements and closing entries are prepared.

It is critical to follow these steps in sequence to ensure that the financial reports are accurate. The worksheet serves as a tool to compile and adjust account information before the final statements are created.