U2 L18 The Post-Closing Trial Balance

U2 L18 The Post-Closing Trial Balance - The Post-Closing...

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Now that you have learned how to journalize and post closing entries, it is important to ensure that the company's ledger is still in balance. Therefore, another trial balance should be taken off after the closing process is complete. Since, at this point, all of the nominal accounts have zero balances, the only accounts that would appear on this post- closing trial balance are the asset, liability, and capital accounts. In this lesson, we will learn how to create a post-closing trial balance. As well, we will be able to now summarize all of the steps of the accounting cycle. A post-closing trial balance is taken off after the closing entries have been journal ized and posted, in order to ensure that the ledger is still in balance. Since, at this point, all of the nominal accounts have zero balances, the only accounts that would appear on a post- closing trial balance are the asset, liability, and capital accounts. Preparing a post-closing trial balance is the final step in the accounting process. Let's demonstrate.
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U2 L18 The Post-Closing Trial Balance - The Post-Closing...

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