Adjusted Trial Balance
Definition: An adjusted trial balance shows every general-ledger account after period-end adjusting entries have been recorded. The worksheet format below star…
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An adjusted trial balance shows every general-ledger account after period-end adjusting entries have been recorded. The worksheet format below starts with the unadjusted trial balance, applies four common adjustments, and produces the adjusted trial balance used to prepare financial statements.
Sample Trial Balance WorksheetAdjusted
| Fictitious Company LLC | ||||||
|---|---|---|---|---|---|---|
| Trial Balance Worksheet | ||||||
| As of December 31, 2025 | ||||||
| Account | Unadjusted Trial Balance | Adjustments | Adjusted Trial Balance | |||
| Debit | Credit | Debit | Credit | Debit | Credit | |
| ASSETS | ||||||
| Cash and Cash Equivalents | $124,500 | $124,500 | ||||
| Short-Term Investments | 35,000 | 35,000 | ||||
| Accounts Receivable | 187,200 | 187,200 | ||||
| Allowance for Doubtful Accounts | 9,360 | 9,360 | ||||
| Inventory | 142,800 | 142,800 | ||||
| Prepaid Expenses | 19,100 | 700(c) | 18,400 | |||
| Property, Plant & Equipment | 680,000 | 680,000 | ||||
| Accumulated Depreciation | 198,000 | 6,000(b) | 204,000 | |||
| Goodwill | 95,000 | 95,000 | ||||
| Other Intangible Assets | 42,000 | 42,000 | ||||
| LIABILITIES | ||||||
| Accounts Payable | 96,300 | 96,300 | ||||
| Accrued Expenses | 32,200 | 2,500(a) | 34,700 | |||
| Current Portion of Long-Term Debt | 25,000 | 25,000 | ||||
| Unearned Revenue | 14,000 | 1,500(d) | 12,500 | |||
| Long-Term Debt | 275,000 | 275,000 | ||||
| Deferred Tax Liability | 18,200 | 18,200 | ||||
| EQUITY | ||||||
| Members' Capital Contributions | 350,000 | 350,000 | ||||
| Retained Earnings (Beginning) | 225,000 | 225,000 | ||||
| REVENUE | ||||||
| Revenue | 1,248,500 | 1,500(d) | 1,250,000 | |||
| Interest Income | 1,400 | 1,400 | ||||
| EXPENSES | ||||||
| Cost of Goods Sold | 750,000 | 750,000 | ||||
| Salaries & Wages | 162,500 | 2,500(a) | 165,000 | |||
| Depreciation Expense | 62,000 | 6,000(b) | 68,000 | |||
| Amortization Expense | 8,000 | 8,000 | ||||
| Rent Expense | 36,000 | 36,000 | ||||
| Utilities Expense | 12,000 | 12,000 | ||||
| Insurance Expense | 7,700 | 700(c) | 8,400 | |||
| Advertising Expense | 16,000 | 16,000 | ||||
| Office Supplies Expense | 4,800 | 4,800 | ||||
| Bad Debt Expense | 3,120 | 3,120 | ||||
| Interest Expense | 15,600 | 15,600 | ||||
| Income Tax Expense | 39,640 | 39,640 | ||||
| OTHER | ||||||
| Member Distributions | 50,000 | 50,000 | ||||
| TOTALS | $2,492,960 | $2,492,960 | $10,700 | $10,700 | $2,501,460 | $2,501,460 |
Adjusting Entries
| (a) Accrued wages for Dec 25–31, not yet recorded | ||
| Dr. | Salaries & Wages Expense | $2,500 |
| Cr. | Accrued Expenses | $2,500 |
| (b) December depreciation on fixed assets | ||
| Dr. | Depreciation Expense | $6,000 |
| Cr. | Accumulated Depreciation | $6,000 |
| (c) December insurance premium expired | ||
| Dr. | Insurance Expense | $700 |
| Cr. | Prepaid Expenses | $700 |
| (d) Revenue earned on customer deposits | ||
| Dr. | Unearned Revenue | $1,500 |
| Cr. | Revenue | $1,500 |
Unadjusted: $2,492,960 = $2,492,960 | Adjustments: $10,700 = $10,700 | Adjusted: $2,501,460 = $2,501,460
DurationN/A
Related Subjects
Understand First
- Trial BalanceUnadjusted trial balance is the starting point
Foundation
- AccrualAdjustments enforce accrual-basis accounting
Related
- Adjusting EntriesThe adjustments that transform the unadjusted into adjusted trial balance
Produces
- Income StatementAdjusted trial balance feeds directly into the income statement
- Balance SheetAdjusted trial balance feeds directly into the balance sheet
Next Step
- Closing EntriesClosing entries follow after the adjusted trial balance