1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-3 Preparing a Post-Closing Trial Balance

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 16-3 POST-CLOSING TRIAL BALANCE 1 6 page 496 7.Double lines 6.Totals 5.Word Totals 4.Credit balances 3.Debit balances 2.Accounts that have balances 1.Heading 2 3 4 7 5 A post-closing trial balance is prepared to prove the equality of debits & credits in the general ledger & to prepare the general ledger for the next fiscal period

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 16-3 ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION 1 2 3 4 5 page 497 (continued on next slide) 1.Source documents are checked, and transactions are analyzed. 2.Transactions are recorded in journals. 3.Journal entries are posted to the accounts payable ledger, the accounts receivable ledger, and the general ledger. 4.Schedules of accounts payable and account receivable are prepared from the subsidiary ledgers. 5.A work sheet is prepared from the general ledger.

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 16-3 ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION 6.Financial statements are prepared. page 497 (continued from previous slide) 6 7 8 9 9.A post-closing trial balance of the general ledger is prepared. 8.Adjusting and closing entries are posted to the general ledger. 7.Adjusting and closing entries are journalized from the work sheet.