Question

Brian is putting together a balance worksheet and just finished entering the balances of the general ledger accounts into the trial balance section of the worksheet.

After making sure that the trial balance is accurate, Brian will prepare the __________ section, followed by the __________ section of the worksheet.
a.)income statement; balance sheet
b.)balance sheet; closing entries
c.)adjusting entries; adjusted trial balance
d.)adjusted trial balance; income statement

Answer 1

Brian will prepare the c) adjusting entries after the trial balance, followed by the adjusted trial balance section on the worksheet.

Step-by-step explanation:

After making sure that the trial balance is accurate, Brian will prepare the adjusting entries section, followed by the adjusted trial balance section of the worksheet. The first step after the trial balance involves recording any necessary adjusting entries, which are changes made to account balances to more accurately reflect revenues and expenses in the period in which they occurred. Once the adjusting entries are posted to the general ledger and the new balances are entered into the trial balance, an adjusted trial balance is prepared to ensure that the entries were made correctly and that debits still equal credits.