Using Excel.

1 Creating an adjusted trial balance. (use very few accounts 3 asset, 2 liability 3 stockholder's equity, 1 revenue, 2 expense) Do not do the worksheet that is in problem 1 (a). It has to have the contra accounts dividends and accumulated depreciation-eq. Make up the numbers. It must balance.

2. Creating an income statement, retained earnings statement and classified balance sheet.

3. Journalized the closing entries. Zero out the income statement accounts (Revenue & Expenses) to the income summary, then zero out the income summary to retained earnings. Zero out dividends to retained earnings. (just increased the equity of the company by the net income, minus what was given to the owners.)

4. Post the closing journal entries to the ledger. Use the adjusted trial balance for the beginning balances. Use a three column format. once done , all the income statements and dividend accounts should be zero to get ready for the next month

5. And Create post-closing trial balance.