Learn how to prepare a trial balance from t-accounts.
- Once all journal entries are posted…to individual accounts,…a balance for each account can now be computed.…Remember, if the debits and the credits are equal,…for each journal entry,…the totals of the debits and credits should still be equal…after all of the journal entries are posted to the ledger.…This can be verified by looking…at the company's trial balance,…which is a listing of all of the company's ledger accounts…and their balances.…Veda's end-of-year trial balance looks like this…after all of the journal entry amounts have been posted…to the respective accounts.…
Note that the total of the debit balances…in Veda's ledger is $3,478,000,…which is equal to the total of the credit balances.…When manual accounting systems were predominant,…the equality of debits and credits…in the trial balance was used to indicate…whether the posting process had been completed correctly.…From a trial balance, we can easily prepare a balance sheet…and an income statement.…Each account, with its associated balance,…is merely copied to the appropriate place…
Jim Stice
Earl Kay Stice
Released
12/21/2018Stay tuned for Part 2 of the training series, which covers ratio analysis, forecasting, and business valuation.
- Explain the equality required in the basic accounting equation.
- Recall why accounts payable are considered Current Liabilities.
- Identify which financial statement can be described as a “snapshot” of a company’s final position.
- Name the term used to refer to a company where the Operating Cash exceeds the investing and Financing activities.
- Identify the result of entering a debit in an expense account.
- Name the account that is closed at the end of the year.
Skill Level Beginner
Duration
Views
-
Introduction
-
1. The Accounting Equation
-
The basic equation3m 17s
-
2. Assets
-
Definition of an asset4m 26s
-
Types of assets: Current3m 56s
-
Types of assets: Long term4m 37s
-
3. Liabilities
-
Definition of a liability3m 48s
-
Contingent liabilities4m 13s
-
4. Owner's Equity
-
Definition of equity4m 9s
-
Book value vs. net worth3m 33s
-
5. Financial Statements: Balance Sheet
-
6. Financial Statements: Income Statement
-
Income statement4m 55s
-
Earnings per share4m 21s
-
The Walmart income statement4m 42s
-
7. Financial Statements: Statement of Cash Flows
-
Cash cows1m 50s
-
Statement of cash flows2m 49s
-
-
8. How Financial Statements Are Made
-
9. Debits and Credits
-
Debits and credits4m 45s
-
Journal entries, part 15m 25s
-
Journal entries, part 24m 53s
-
Journal entries, part 34m 41s
-
T-accounts and posting3m 29s
-
10. Accrual Accounting
-
Net income vs. cash flow5m 9s
-
Conclusion
-
Next steps1m 34s
-
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.
Share this video
Embed this video
Video: Trial balance: The raw material for financial statements