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Unformatted text preview: prepare an Adjusted Trial Balance which again helps to prove the mathematical equality of debits and credits after adjustments have been made. Step seven you prepare the financial statements. Step eight is Journalizing and Posting the Closing Entries where the temporary accounts are closed; such entries formally recognize in the ledger the transfer of net income (or net loss) and dividends to retained earnings, and step nine is Preparing a Post-Closing Trial Balance which proves the equality of the permanent account balances that are carried forward into the next accounting period....
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- Spring '11