Once a book is balanced, an adjusted trial balance can be completed. This trial balance has the final balances in all the accounts, and it is used to prepare the financial statements.

That means debits and credits will still add up even if they’re made to the wrong accounts. This is why it’s often important to review each line item on the trial balance. Unadjusted vs. Adjusted ...

This process is identical to preparing the trial balance, except it is done after the adjusting entries. Simply list all of the accounts, including the ones updated with the adjusting entries, and ...

Adjust the trial balance to reflect the previous year's book-to-tax adjustment. This entry can be computed by subtracting the previous year's book-basis balance sheet from the previous year's tax ...