The Adjusted Trial Balance

Concept

After Adjusting Entries

Once all adjusting entries are posted, a new trial balance is prepared called the Adjusted Trial Balance. This ensures debits still equal credits and that all accounts reflect the correct end-of-period balances.

Key Point

Flow of the Process

Unadjusted Trial Balance → Post Adjusting Entries → Adjusted Trial Balance → Prepare Financial Statements. The adjusted trial balance is the direct source for preparing the income statement, balance sheet, and statement of retained earnings.

Depreciation

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