Section 3Preparing a Trial Balance What You’ll Learn The purpose of a trial balance. How to...
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Section 3 Preparing a Trial Balance What You’ll Learn The purpose of a trial balance. How to prepare a trial balance. How to identify and locate trial balance errors.
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Transcript of Section 3Preparing a Trial Balance What You’ll Learn The purpose of a trial balance. How to...
Section 3Preparing a Trial Balance
Section 3Preparing a Trial Balance
What You’ll Learn
The purpose of a trial balance.
How to prepare a trial balance.
How to identify and locate trial
balance errors.
What You’ll Learn
The purpose of a trial balance.
How to prepare a trial balance.
How to identify and locate trial
balance errors.
Why It’s ImportantTo present accurate financial
statements, the accounts must be in balance. The purpose of a trial balance is to prove that the general ledger is in balance.
Why It’s ImportantTo present accurate financial
statements, the accounts must be in balance. The purpose of a trial balance is to prove that the general ledger is in balance.
Section 3 Preparing a Trial Balance (cont'd.)Section 3 Preparing a Trial Balance (cont'd.)
Key Terms
proving the ledger
trial balance
transposition error
Key Terms
proving the ledger
trial balance
transposition error
slide error
correcting entry
slide error
correcting entry
The Fifth Step in the Accounting Cycle: The Trial BalanceThe Fifth Step in the Accounting Cycle: The Trial Balance
Section 3 Preparing a Trial Balance (cont'd.)Section 3 Preparing a Trial Balance (cont'd.)
A formal way to prove that debits
equal credits is to prepare a trial
balance.
Prepared on two-column
accounting stationery.
Account numbers are listed in the
far left column.
A formal way to prove that debits
equal credits is to prepare a trial
balance.
Prepared on two-column
accounting stationery.
Account numbers are listed in the
far left column.
The Fifth Step in the Accounting Cycle: The Trial Balance (cont'd.)
The Fifth Step in the Accounting Cycle: The Trial Balance (cont'd.)
Section 3 Preparing a Trial Balance (cont'd.)Section 3 Preparing a Trial Balance (cont'd.)
Account names are listed in the
next column.
Debit balances are entered in the
first amount column.
Credit balances are entered in the
second amount column.
Account names are listed in the
next column.
Debit balances are entered in the
first amount column.
Credit balances are entered in the
second amount column.
The Fifth Step in the Accounting Cycle: The Trial Balance (cont'd.)
The Fifth Step in the Accounting Cycle: The Trial Balance (cont'd.)
Section 3 Preparing a Trial Balance (cont'd.)Section 3 Preparing a Trial Balance (cont'd.)
Check Your UnderstandingCheck Your Understanding
What is the purpose of a trial
balance?
What is the purpose of a trial
balance?
Section 3 Preparing a Trial Balance (cont'd.)Section 3 Preparing a Trial Balance (cont'd.)
