ACC 333 Lecture : ACCURAL AND TRAIL BAALANCE.doc
22 Apr 2012
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Document Summary
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. The following adjusted trial balance was prepared after posting the adjusting entries of. Company a to its general ledger and calculating new account balances: An airline sells its tickets days or even weeks before the flight is made, but it does not record the payments as revenue because the flight, the event on which the revenue is based has not occurred yet.
