ACCURAL AND TRAIL BAALANCE.doc

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22 Apr 2012
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Adjusted Trial Balance
An Adjusted Trial Balance is a list of the balances of ledger accounts which is created after the
preparation of adjusting entries. Adjusted trial balance contains balances of revenues and
expenses along with those of assets, liabilities and equities. Adjusted trial balance can be used
directly in the preparation of the statement of changes in stockholders' equity, income
statement and the balance sheet. However it does not provide enough information for the
preparation of the statement of cash flows.
The format of an adjusted trial balance is same as that of unadjusted trial balance.
Example
The following adjusted trial balance was prepared after posting the adjusting entries of
Company A to its general ledger and calculating new account balances:
Company A
Adjusted Trial Balance
January 31, 2010
Debit
Credit
Cash
$20,430
Accounts Receivable
5,900
Office Supplies
4,320
Prepaid Rent
24,000
Equipment
80,000
Accumulated Depreciation
$1,100
Accounts Payable
5,200
Utilities Payable
3,964
Unearned Revenue
1,000
Interest Payable
150
Notes Payable
20,000
Common Stock
100,000
Service Revenue
85,600
Wages Expense
38,200
Supplies Expense
18,480
Rent Expense
12,000
Miscellaneous Expense
3,470
Electricity Expense
2,470
Telephone Expense
1,494
Depreciation Expense
1,100
Interest Expense
150
Dividend
5,000
Total
$217,014
$217,014
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