Sunday, December 4, 2011

How do you calculate the adjusted trial balance? and what parts you don't calculate from the trial balance?

I am just trying to understand this accounting procedure. I need an example of a trial balance and basically I am looking for the adjusted part of the trial balance and how to calculate it (the part that comes last after all the adjustments are made.) Thanks, I hope someone can help.|||When the adjustments are made, there is always a debit to an expense account and a credit to an asset, contra-asset, or liability account. For all the debits, just add them to the same account that is on the trial balance. For example, if the Supplies Expense on the trial balance is $50 and the adjustment is a debit of $25 to Supplies Expense, the adjusted trial balance would show a debit of $75. For the credits, you would subtract them from the assets or liabilities. This will cause you to end up with either a debit or a credit balance for the adjusted trial balance, depending on which account it is. Accounts such as Accumulated Depreciation and Wages Payable should always carry a credit balance. As far as the parts you don't calculate, if you don't have an adjustment to an account, just move the amounts over from the trial balance to the adjusted trial balance. Good luck

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