Step 2: Prepare the journal entries for the May1 through May 31 transactions. Now post the journal entries to the general ledger accounts (don't forget the post references).

Step 3: Post the journal entries to the general ledger,extending the month-end balances to the appropriate balance columns after all posting is completed (before adjusting entries are make).

Step 4: Prepare the Trial Balance as of May 31 on a ten column work sheet listing all accounts, in order, from the general ledger accounts. Complete the work sheet using the adjusting entries shown on page 268 instruction # 4.

Step 5: Prepare the financial statements from the worksheet. (Multiple-step income statement, retained earnings, and report form balance sheet.)

Step 6: Journalize and post the adjusting entries.

Step 7: Prepare the closing entries in journal format. Now, post the closing entries to the general ledger accounts. Indicate closed accounts by inserting a line in both balance columns opposite the closing entry. Insert the new balance in the retained earnings account.

Step 8: Prepare the Post-Closing Trial Balance from the general ledger accounts. You do not have to enter accounts with a zero balance.

Net Income.............................................. $ 741,855

Total Assets............................................. $1,458,175 (Balance Sheet)

Worksheet -total Trial Balance Column........ $6,210,625 (Unadjusted)

Total for the adjustments.......................... $ 158,350

Total for the Adjusted Trial Balance columns..$6,238,225

Post Closing Trial Balance.......................... $ 1,528,875