(a) Debits and credits are posted to the ledger.

(b) Accounting transaction occurs.

(c) Information is entered in the journal.

(d) Financial statements are prepared.

(e) Trial balance is prepared. Indicate to Russ the proper flow of the information. Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately, would prevent the trial balance from balancing. What would you tell them?

(a) The bookkeeper debited Cash for $600 and credited Wages Expense for $600 for payment of wages.

(b) Cash collected on account was debited to Cash for $900, and Service Revenue was credited for $90.

AppendixLO1