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Unformatted text preview: new Accounting Cycle. Step 1 For each business transaction that occurs during the accounting period, determine the effect of the transaction on the General Ledger accounts. Step 4 Prepare a Pre-Closing Trial Balance to determine that the accounts in the General Ledger are in balance. Step 6 Calculate the ending balance of the Retained Earnings account that is needed for the preparation of the Balance Sheet. Step 5 Prepare an Income Statement from the ending balances in the General Ledger revenue and expense accounts. Step 8 Prepare and enter the revenue, expense, and dividend closing entries into the General Journal, and post the closing entries to the General Ledger accounts. Step 2 Make an entry in the General Journal for each transaction and post the entry to the General Ledger accounts....
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- Fall '08