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In: Accounting

How do you do an Adjusted Trial Balance to make both columns (debit, credit) equal?

How do you do an Adjusted Trial Balance to make both columns (debit, credit) equal?

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Expert Solution

An adjusted trial balance list all company accounts that appears on the financial statements
after year-end adjusting journal entries have been made.
Both the debit and credit columns are calculated at the bottom of a trial balance.
As with the accounting equation, these debit and credit totals must always be equal.
If they aren’t equal, the trial balance was prepared incorrectly or the journal entries weren’t transferred to the ledger accounts accurately.
We post accounts to the adjusted trial balance using the same method used in creating the unadjusted trial balance.
We take the unadjusted trial balance and add the adjustments to the accounts that have been changed.
The account balances are taken from the T-accounts or ledger accounts and listed on the trial balance
Adjusting entries are prepared at the end of the accounting period for Accrual Income, Accrual expenses,
deferrals, prepayments, depreciation, and allowances.

ekkarill92 answered 3 years ago
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