What you’ll learn to do: Creating the adjusted trial balance
In this section, we are going to revisit NeatNiks’ October unadjusted trial balance. We will take the following steps:
- analyze,
- look for any accounts that need to be adjusted in order to bring it into compliance with GAAP,
- create and post adjusting journal entries; and
- run the adjusted trial balance, which will be the final check before we create the financial statements.
The Accounting Cycle
- Analyze Transactions
- Prepare Journal Entries
- Post Journal Entries
- Prepare Unadjusted Trial Balance
- Make Adjusting Journal Entries
- Prepare Adjusted Trial Balance
- Prepare Financial Statements
- Prepare Closing Entries
- Prepare Post-Closing Trial Balance
- Create and Post Reversing Entries, if needed