ACT4491 Trial Balance

ACT4491 Trial Balance - Advanced Accounting Review of Trial...

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Unformatted text preview: Advanced Accounting Review of Trial Balance, Adjusting, and Closing Trial Balance • The trial balance lists all account balances at the end of an accounting period – From “ledger” • All accounts are listed and the equality of the trial balance is “proven” before attempting to prepare financial records Account Income Number Description Balance Debit Credit Statement Debit Credit Adjustments Balance Sheet Trial Balance Trial Balance • Typically prepared before review of accounts • Analyzing the TB assists accountants in determining which accounts should be adjusted • After adjustments are made, balances are carried “over” to the income statement or balance sheet columns • Net income is calculated and the accounts are “closed” Account Income Number Description Balance Debit Credit Statement Debit Credit Adjustments Balance Sheet Trial Balance Trial Balance • Illustration Account Income Number Description Balance Debit Credit Statement Debit Credit Cash 13,500 Accounts Receivable 6,000 Inventory 30,000 Prepaid Expenses 5,700 Store Equipment 24,000 Accumulated Depreciation Accounts Payable (9,000) Accrued Interest Taxes Payable (1,450) Bank Loan Payable (20,000) Capital Stock (40,000) Retained Earnings Sales (60,000) Sales Returns 1,300 Cost of Goods Sold 30,000 Wage Expense 11,000 Salary Expense 7,000 Utilities Expense 500 Taxes Payable 1,450 Rent Expense Insurance Expense Depreciation Expense Interest Expense Total- Closing to Retained Earnings Balances Adjustments Balance Sheet Trial Balance Trial Balance • Assume this is the first year of operation • Assume the trial balance is being prepared for a “one- month” period Account Income Number Description Balance Debit Credit Statement Debit Credit Cash 13,500 Accounts Receivable 6,000 Inventory 30,000 Prepaid Expenses 5,700 Store Equipment 24,000 Accumulated Depreciation Accounts Payable (9,000) Accrued Interest Taxes Payable (1,450) Bank Loan Payable (20,000) Capital Stock (40,000) Retained Earnings Sales (60,000) Sales Returns 1,300 Cost of Goods Sold 30,000 Wage Expense 11,000 Salary Expense 7,000 Utilities Expense 500 Taxes Payable 1,450 Rent Expense Insurance Expense Depreciation Expense Interest Expense...
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This note was uploaded on 03/30/2011 for the course ACT 4491 taught by Professor Magrath during the Spring '11 term at Troy.

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ACT4491 Trial Balance - Advanced Accounting Review of Trial...

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