| A | B |
|---|
| PERMANENT ACCOUNTS | ASSETS, LIABILITIES, CAPITAL |
| TEMPORARY ACCOUNTS | SALES, EXPENSES, INCOME SUMMARY, DRAWING |
| FIRST STEP IN CLOSING | CLOSE SALES TO INCOME SUMMARY |
| SECOND STEP IN CLOSING | CLOSE EXPENSES TO INCOME SUMMARY |
| THIRD STEP IN CLOSING | CLOSE INCOME SUMMARY TO CAPITAL |
| FOURTH STEP IN CLOSING | CLOSE DRAWING TO CAPITAL |
| IN THE ACCOUNTING CYCLE, PREPARE SOURCE DOCUMENTS..THEN | ANALYZE AND JOURNALIZE TRANSACTIONS |
| IN THE ACCOUNTING CYCLE, AFTER JOURNALIZING | POST TO THE GENERAL LEDGER |
| IN THE ACCOUNTING CYCLE, AFTER POSTING | PREPARE A TRIAL BALANCE |
| IN THE ACCOUNTING CYCLE, AFTER TRIAL BALANCE | COMPLETE THE WORKSHEET |
| AFTER THE WORKSHEET IS COMPLETED | PREPARE FINANCIAL STATEMENTS |
| THE LAST STEP IN THE ACCOUNTING CYCLE | PREPARE A POST-CLOSING TRIAL BALANCE |
| THESE ACCOUNTS WILL BE ON THE POST-CLOSING TRIAL BALANCE | PERMANENT ACCOUNTS |
| THE ENTRY REQUIRED TO CLOSE EXPENSES | CREDIT |
| THE ENTRY REQUIRED TO CLOSE SALES | DEBIT |
| ACCOUNTS AFFECTED BY ADJUSTING ENTRIES | SUPPLIES, SUPPLIES EXPENSE, PREPAID INSURANCE, INSURANCE EXPENSE |
