Step 1 Journalizing transactions - journal or Taccount Corson Catering January 1, 2020 Transaction 1. Don Carson invested $70,000 in the business Transaction 2. The business spent $600 in advertising Transaction 3. The business purchased a one-year insurance premium of $8,400 using loan from the bank. The insurance coverage is from Jan 1, 2020 through Dec 31, 2020. Transaction 4. The business catered a dinner party and received $3,000 Transaction 5. Don Carson withdrew $2,000 from the business Accounts you will use include Cash, Capital, Drowing, Advertising Expense, Notes Payable, Catering Revenue, Prepaid Insurance, Insurance Expense, Income Summary. Step 2 Posting - transfer the debts and credits from journals to the ledger accounts I Step 3 Trail Balance - summarizing the ledger accounts to prove the equality of debits and credits Step 4 Preparing adjusting entries - determining the adjustments and recording them in the general journal The one month's insurance Step 5 Posting adjusting entries I Step 6 Adjusted trail balance Step 7 Financial statements - rearranging the adjusted trial balance into an income statement and a balance sheet I Step 8 Recording and posting closing entries Step 9 Post-closing trial balance I 213 words English (United States) Focus