Introduction to Preparing an Adjusted Trial Balance

What you’ll learn to do: Creating the adjusted trial balance

Step 6. Prepare 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

  1. Analyze Transactions
  2. Prepare Journal Entries
  3. Post Journal Entries
  4. Prepare Unadjusted Trial Balance
  5. Make Adjusting Journal Entries
  6. Prepare Adjusted Trial Balance
  7.  Prepare Financial Statements
  8. Prepare Closing Entries
  9. Prepare Post-Closing Trial Balance
  10. Create and Post Reversing Entries, if needed