RECAP

• It is the 2nd steps in the

accounting cycle. It is also
called as the book of final
entries?
 RECAP

•While posting to the ledger

is called as the book of final
entries, then what is the
book of original entries?
 RECAP

• Journalize the following

transaction:
1. On Sept. 1, the business
purchased equipment
amounting 20,000 on account
 RECAP

• Journalize the following

transaction:
1. On Sept. 5, the owner
withdraw 10, 000 for personal
used.
 RECAP

Post the following transactions to the ledger:

DATE PARTICULARS DEBIT CREDIT
2019
1/1 Cash 100,000
Mr. Jones, Capital 100,000

1/3 Office Equipment 5,000

Accounts Payable 5,000

1/4 Cash 1,500

Service Revenue 1,500

1/20 Cash 3,000

Mr. Jones, Withdrawal 3,000
4th STEP IN THE ACCOUNTING CYCLE
 OBJECTIVES

•Prepares adjusting entries,

ledger, and adjusted trial
balance.
 ADJUSTED TRIAL BALANCE

• An adjusted trial balance is prepared

after adjusting entries are made and
posted to the ledger.
• This is the second trial balance
prepared in the accounting cycle. Its
purpose is to test the equality between
debits and credits after adjusting
entries are entered into the books of
the company.
TO ILLUSTRATE HOW IT WORKS, HERE IS A
SAMPLE UNADJUSTED TRIAL BALANCE
Gray Electronic Repair Services
Unadjusted Trial Balance
December 31, 2017

Account Title Debit Credit

Cash 7,480.00
Accounts Receivable 3,400.00
Service Supplies 1,500.00
Furniture and Fixtures 3,000.00
Service Equipment 16,000.00
Accounts Payable 9,000.00
Loans Payable 12,000.00
Mr. Gray, Capital 13,200.00
Mr. Gray, Drawing 7,000.00
Service Revenue 9,550.00
Rent Expense 1,500.00
Salaries Expense 3,500.00
Taxes and Licenses 370.00
Totals 43,750.00 43,750.00
AT THE END OF THE PERIOD, THE FOLLOWING
ADJUSTING ENTRIES WERE MADE:

Dec 31 Accounts Receivable 300.00

Service Revenue 300.00

31 Utilities Expense 1,800.00

Utilities Payable 1,800.00

31 Service Supplies Expense 900.00

Service Supplies 900.00

31 Depreciation Expense 720.00

Accumulated Depreciation 720.00

 ADJUSTED TRIAL BALANCE
Gray Electronic Repair Services
Adjusted Trial Balance
December 31, 2017

Account Title Debit Credit

Cash 7,480.00
Accounts Receivable 3,700.00
Service Supplies 600.00
Furniture and Fixtures 3,000.00
Service Equipment 16,000.00
Accumulated Depreciation 720.00
Accounts Payable 9,000.00
Utilities Payable 1,800.00
Loans Payable 12,000.00
Mr. Gray, Capital 13,200.00
Mr. Gray, Drawing 7,000.00
Service Revenue 9,850.00
Rent Expense 1,500.00
Salaries Expense 3,500.00
Taxes and Licenses 370.00
Utilities Expense 1,800.00
Service Supplies Expense 900.00
Depreciation Expense 720.00
Totals 46,570.00 46,570.00