Adjusted Trial Balance
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:
January 31, 2010 | ||
Office Supplies | 4,320 | |
Prepaid Rent | 24,000 | |
Equipment | 80,000 | |
Accumulated Depreciation | 1,100 | |
Accounts Payable | 5,200 | |
Utilities Payable | 3,964 | |
Unearned Revenue | 1,000 | |
Interest Payable | 150 | |
Notes Payable | 20,000 | |
Common Stock | 100,000 | |
Service Revenue | 85,600 | |
Wages Expense | 38,200 | |
Supplies Expense | 18,480 | |
Rent Expense | 12,000 | |
Miscellaneous Expense | 3,470 | |
Electricity Expense | 2,470 | |
Telephone Expense | 1,494 | |
Depreciation Expense | 1,100 | |
Interest Expense | 150 | |