UNIT#9 - THE ADJUSTED TRIAL BALANCE TUTORIAL - INITIAL TUTORIAL - COMPLETED

INSTRUCTIONS FOR UNIT #9

~ In Unit #8 you recorded the four categories of adjusting entries, i.e. deferred expenses, deferred revenue, accrued expenses, and accrued revenue. The purpose of those entries was to assure that all transactions have been recorded in their proper time period (matching principle). At this point in the accounting cycle of a business, all transactions are recorded, and the account balances should be correct. ~ To assure the equality of debit and credit account balances, a listing of all the accounts and their balances is prepared. This listing is called the adjusted trial balance. ~ To prepare a trial balance, the account listing is prepared from the ledger. The ledger contains all the accounts in an organized manner. The accounts are grouped according to the basic equation, A = L + E. Within the asset group, they are listed in the order of liquidity; within the liability group, they are listed in the order of payment. This ordering is to facilitate the preparation of trial balances and statements. ~ The tutorial titled Initial has cells for twenty-two accounts in the first column on the left. To assist you, some of the accounts and their balances have been recorded. The remaining accounts are listed below. THEY ARE NOT IN THEIR PROPER ORDER. However, each account has its adjusted balance. Therefore, you are to place each account and its balance in the proper cells. Remember, follow A = L + E. There are only two expense accounts remaining to be listed, salary and depreciation expense. Salary expense precedes depreciation expense. ~ The accounts and their balances are: Supplies Equipment Retained earnings Salaries payable Accumulated depreciation Notes payable Fees income Salaries expense Depreciation expense Cash $ 50 500 100 50 50 40 600 150 50 300

~ The tutorial Completed has the correct account and balance listings. The two columns on the right will indicate "Correct" or "Not correct". Also, a response of "In balance" or "Not in balance" will appear at the bottom.