Ch 3.5 Preparing a Trial Balance

Question 1

Trial Balance

Answer 1

list of general ledger accounts and their balances at a specifci time

Question 2

A company usually prepares a trial balance at the end of an accounting period (this is usually monthly, but could also be quarterly or annually).The accounts are listed in the order in which they appear in the general ledger.Debit balances are listed in the left column and credit balances in the right column. The totals of the two columns must be equal.

Answer 2

A company usually prepares a trial balance at the end of an accounting period (this is usually monthly, but could also be quarterly or annually).The accounts are listed in the order in which they appear in the general ledger.Debit balances are listed in the left column and credit balances in the right column. The totals of the two columns must be equal.

Question 3

How to prepare a trial balance

Answer 3

1:List the account titles and their balances. For assignment purposes, you will be expected to list the accounts in the trial balance in the same order as they would appear in the general ledger unless otherwise advised.

2: Total the debit column and the credit column

3.Ensure that the debit and credit column totals are equal (agree).

Question 4

why may the trial balance be wrong?

Answer 4

transaction not recorded, jorunal entry no tposted, incorrect account are used in journalizing or posting

Question 5

first 4 steps of the accounting cycle

Answer 5

1) analyze business transactions (A=L+SE)
2) Journalize the transactions (account names and debit and credit)
3) Post to the ledger accounts (record d/l on t accounts)
4) prepare a trial balance

Question 6

steps 1 and 2 of accoutning period occur how much

Answer 6

daily!

Question 7

step 3 occurs when

Answer 7

may also occur daily but post monthly

Question 8

step 4 of cucle is done when?

Answer 8

on a periodic basis (monthly/quarterly/annually)

Question 9

How to check if an accounting transaction occurred?

Answer 9

CHECK If the transaction affected assets, liabilities, or shareholders’ equity, then record as an accounting transaction.

Question 10

How do you determine an accounts normal balance

Answer 10

The normal balance of an account is always on its increase side.

Accounts that normally have a debit balance: assets, expenses, and dividends declared.

Accounts that normally have a credit balance: liabilities, retained earnings, common shares, and revenues.

Question 11

How do you determine that debits =credits

Answer 11

Check TRIAL BALANCE

List the account titles and their balances. Total the debit and credit columns and verify equality.