For example, if the depreciation amount remains the same from one accounting period to the next, it’ll appear the same on the trial balance, alerting the accountant to a mistake. Auditors also use the ...

For example, if the overstatement is $61.52 because you missed two weeks of lawn service, record $61.52 as a debit to lawn service revenue and a credit of $61.52 to the unearned lawn service fees ...

The next step involves closing entries. This process closes out the revenue, expense, drawing or dividend accounts. Each account is closed to a special account called income summary. For example ...