TRIAL BALANCE AND FINANCIAL STATEMENT PREPARATION. Topic: Trial Balance and Financial Statement Preparation. Concept: Using balances from the General Ledger accounts learn to prepare a trial balance and then an income statement and balance sheet. Objectives. Learn how to prepare a trial balance; Understand what a trial balance says and does not say Adjusting entries that will result in a difference between the unadjusted trial balance and the adjusted trial balance include the following: The accrual of expenses that were incurred but were not yet recorded. The accrual of revenues that were earned but were not yet recorded. The deferral of a ...

Ledger balances are posted into the trial balance. Trial Balance is cast and errors are identified. Suspense account is created to agree the trial balance totals temporarily until corrections are accounted for. Errors identified earlier are rectified by posting corrective entries. Any adjustments required at the period end not previously ... The work sheet at the end of July has $5,950 in the Balance Sheet credit column for Accumulated Depreciation. The work sheet at the end of August has $7,600 in the Balance Sheet credit column for Accumulated Depreciation. What was the amount of the depreciation expense adjustment for the month of August? A. $1,650. B. $7,600 The last three pairs of columns are the appropriate financial statement extensions of amounts from the adjusted trial balance columns. For example, Cash is an asset account with a debit balance, and is “appropriately” extended from the adjusted trial balance columns to the debit column of the balance sheet pair of columns.