4.4 Use the Ledger Balances to Prepare an Adjusted Trial Balance - Principles of Accounting, Volume

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9/18/20204.4 Use the Ledger Balances to Prepare an Adjusted Trial Balance - Principles of Accounting, Volume 1: Financial Accounting | OpenStax1/4Once all of the adjusting entries have been posted to the general ledger, we are ready to start working onpreparing the adjusted trial balance. Preparing an adjusted trial balance is the sixth step in the accountingcycle. Anadjusted trial balanceis a list of all accounts in the general ledger, including adjusting entries,which have nonzero balances. This trial balance is an important step in the accounting process because ithelps identify any computational errors throughout the first five steps in the cycle.As with the unadjusted trial balance, transferring information from T-accounts to the adjusted trial balancerequires consideration of the final balance in each account. If the final balance in the ledger account (T-account) is a debit balance, you will record the total in the left column of the trial balance. If the final balancein the ledger account (T-account) is a credit balance, you will record the total in the right column.

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Term
Fall
Professor
NoProfessor
Tags
Revenue, Generally Accepted Accounting Principles, Double entry bookkeeping system, ledger balances

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