Problem
The mechanics of accounting involve analyzing the effect on the accounting equation of financial transactions. Knowing how transactions affect the accounting equation allows you to consider and account for all the ramifications of sometimes complicated transactions.
Think about the steps in the accounting cycle:
A. Analyze business transactions
B. Journalize the transactions
C. Post journal entries to general ledger accounts
D. Prepare the unadjusted trial balance
E. Record the adjusting entries in the General Journal and post to Ledger Accounts.
F. Prepare the adjusted trial balance
G. Prepare the Four Basic Financial Statements (Income Statement, Owners Equity, Balance Sheet and Cash Flow) using the adjusted trial balance
H. Record Closing Entries in General Journal and post to Ledger Accounts
I. Prepare Post-closing Trial Balance
J. Prepare reversing entries and post to the ledger accounts (if applicable)