From the following list of steps in the accounting cycle, identify what two steps are missing.
a. Transactions are analyzed and recorded in the journal.
b. An unadjusted trial balance is prepared.
c. Adjustment data are assembled and analyzed.
d. An optional end-of-period spreadsheet is prepared.
e. Adjusting entries are journalized and posted to the ledger.
f. An adjusted trial balance is prepared.
g. Closing entries are journalized and posted to the ledger.
h. A post-closing trial balance is prepared.
Answer:
The following two steps are missing: (1) posting the transactions to the ledger and (2) the preparation of the financial statements. Transactions should be posted to the ledger after step (a). The financial statements should be prepared after step (f).