Trial Balance
A trial balance is a list of all the ledger accounts at a specific point in time. There are several trial balances throughout the accounting cycle.
- Accounts typically listed in financial statement order
- Current assets
- Non-current assets
- Current liabilities
- Non-current liabilities
- Shareholders' Equity
- Revenues
- Expenses
- Account balances listed in two columns: debits (left) credit (right)
- Total debits should equal total credits
Unadjusted Trial Balance
Once all of the transactions throughout an accounting period have been analyzed and recorded. The unadjusted trial balance is prepared and lists the unadjusted ending account balances for each of the company's ledger accounts.
Characteristics of an Unadjusted Trial Balance
- Account balances reflect the journal entries recorded during the accounting period.
- Ending balances are not final if adjustments are needed.
- Total debits = Total credits
Example: Unadjusted Trial Balance
On December 31st, 2019 Wize Rental Agency's trial balance included the following account balances:
Prepare the unadjusted trial balance for the quarter ending March 31, 2020 using the following transactions:
