Question

Address the following questions:1.Between journalizing and posting, which step changes the balance of an account? Explain.2.What are some key differences between each of three trial balances?

Analyzing & Recording Posting to the ledger (T-Accounts)Preparing a Unadjusted Trial Balance #1Adjustments for accruals and deferralsPreparing an Adjusted Trial Balance #2Prepare Financial StatementsClosing Temporary AccountPreparing a Post-Closing Trial Balance #3

Answer 1

Solution to question:-1

The balances are changed in the step of posting.

Explanation Part:-

Now we are considering an exampel for better understanding

Step:-1

Supoose Mr.x invested $100 in his own bussiness . The journal entry for the above transaction is as follows,

Cash Account .................... Debit $ 100

Owner's equity....................credit $ 100

Step:-2

For posting the ledgers , we are debited owners equity in the cash account(t-accounts) and in the owners equity account we are crediting the cash account.

From above discussion it is cleared that balances are changed in the posting.

Solution to question:-2

Before answering this question we have to know the following

1.What is unadjusted trial balence?

= In this trial balence we are recording Asstes, Liabilities,Owners equity, Revenue, Expenses. but in unadjusted form it means that there is no effect of adjusting entries.thats why its called unadjusted trial balence

2.What is adjusted trial Balance?

= Before preparing the adjusted trial balance,we have to prepare the adjusting journal entries, adjusted ledger accounts , then we finally prepare the adjusted trial balance. In a shor this trial has taken into the effect of adjusting entries and shows the adjusted balances if the accounts.

3.What is post closing trial balance?

= After preparing income statement and balance sheet we are doing the closing entries in this entry we closed our all revenue and expenses related accounts.As a result when we prepare post closing trial balance there is only asstes, liabilities, owners equity , and reatained earnings.in this trial we are eliminating the effct of revenue and expenses.

Now we are going to the comparative discussion of Unadjusted trial balance, Adjusted trial Balance,Post-closing trial balance through a table,

Unadjusted Trial balance	Adjusted trial balance	Post closing trial balance
There is effect of genaral entry	There is effect of adjusting entry	There is an effect of closing entry
It shows unadjusted balances of accounts(asstes,liability,owners equity, revenue,expenses)	It shows adjusted balances of accounts (asstes,liability,owners equity, revenue,expenses)	It shows adjusted balances of asstes, liability,owners equity,retained earning

Above mentioned points are indicating the key differences between the unadjusted trial balance, adjusted trial balance, post-closing trial balance.