Trial Balance
Definition: An unadjusted trial balance lists every general-ledger account with its debit or credit balance at a point in time, before any period-end adjusting…
Scope:BroadDifficulty:Easy
An unadjusted trial balance lists every general-ledger account with its debit or credit balance at a point in time, before any period-end adjusting entries. It verifies that total debits equal total credits.
Sample Trial BalanceAdjusted
| Fictitious Conglomeration Corporation | ||
|---|---|---|
| Trial Balance | ||
| As of December 31, 2025 | ||
| Account | Debit | Credit |
| ASSETS | ||
| Cash and Cash Equivalents | $124,500 | |
| Short-Term Investments | 35,000 | |
| Accounts Receivable | 187,200 | |
| Allowance for Doubtful Accounts | 9,360 | |
| Inventory | 142,800 | |
| Prepaid Expenses | 19,100 | |
| Property, Plant & Equipment | 680,000 | |
| Accumulated Depreciation | 198,000 | |
| Goodwill | 95,000 | |
| Other Intangible Assets | 42,000 | |
| LIABILITIES | ||
| Accounts Payable | 96,300 | |
| Accrued Expenses | 32,200 | |
| Current Portion of Long-Term Debt | 25,000 | |
| Unearned Revenue | 14,000 | |
| Long-Term Debt | 275,000 | |
| Deferred Tax Liability | 18,200 | |
| EQUITY | ||
| Members' Capital Contributions | 350,000 | |
| Retained Earnings (Beginning) | 225,000 | |
| REVENUE | ||
| Revenue | 1,248,500 | |
| Interest Income | 1,400 | |
| EXPENSES | ||
| Cost of Goods Sold | 750,000 | |
| Salaries & Wages | 162,500 | |
| Depreciation Expense | 62,000 | |
| Amortization Expense | 8,000 | |
| Rent Expense | 36,000 | |
| Utilities Expense | 12,000 | |
| Insurance Expense | 7,700 | |
| Advertising Expense | 16,000 | |
| Office Supplies Expense | 4,800 | |
| Bad Debt Expense | 3,120 | |
| Interest Expense | 15,600 | |
| Income Tax Expense | 39,640 | |
| OTHER | ||
| Member Distributions | 50,000 | |
| TOTALS | $2,492,960 | $2,492,960 |
Total Debits = Total Credits → $2,492,960 = $2,492,960
Not yet recorded
- (a) Accrued wages $2,500 — employees worked Dec 25–31
- (b) December depreciation $6,000 — not yet booked
- (c) Expired prepaid insurance $700 — coverage used up
- (d) Earned unearned revenue $1,500 — service delivered
Net income overstated by $7,700. View adjusted trial balance →
DurationN/A
Related Subjects
Understand First
- General LedgerTrial balance is extracted from the general ledger
Foundation
- Double-Entry BookkeepingTrial balance verifies that debits equal credits
Part Of
- Accounting CycleTrial balance is a step in the accounting cycle
Related
- Chart of AccountsTrial balance lists every account in the chart of accounts
Next Step
- Adjusted Trial BalanceAdds adjusting entries to produce the adjusted trial balance
- Adjusting EntriesAdjusting entries correct the unadjusted trial balance
External Links
- Trial balance — Wikipedia