Explanation should include the following steps:
- Collect and verify source documents.
- Analyze each transaction.
- Journalize each transaction in the appropriate journal.
- Post transactions to the all ledgers.
- Prepare a schedule of accounts receivable and accounts payable.
- Prepare a trial balance.
- Prepare a worksheet.
- Journalize and post adjusting and closing entries.
- Prepare a post-closing trial balance.
- Prepare financial statements.