Trial Balance Explained. Basic Accounting Course

This lesson covers the concept of a trial balance, explaining how to prepare it using ending balances from the general ledger to ensure total debits equal total credits. It also details methods for detecting and correcting errors, and demonstrates how to use the unadjusted trial balance to prepare core financial statements including the income statement, statement of retained earnings, and balance sheet.

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✨ AI Takeaways & Lesson Breakdown

1
The trial balance is an accounting tool that lists all accounts with their normal ending balances to ensure that total debits equal total credits.
2
Accounts are listed in a specific order: assets, liabilities, common stock, dividends, revenues, and expenses; it is a checkpoint, not a formal financial statement.
3
If a trial balance does not balance, common error-checking steps include verifying column totals, checking accurate entry from ledgers, ensuring debits and credits are not swapped, and recomputing account balances.
4
The unadjusted trial balance serves as the foundational source for drafting the income statement, statement of retained earnings, and the balance sheet.

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Course Content

25 Lessons Total

Playlist
01
What Is Accounting? 3 Core Activities + Simple Examples
02
What Is GAAP? Accounting Rules, FASB, SEC & IFRS Explained
03
FASB’s Conceptual Framework.
04
Accounting Principles & Assumptions: 8 Concepts Explained
05
Accounting Equation: Assets = Liabilities + Equity
06
Accounting Equation: Assets = liabilities + Equity.
07
Analyzing Business Transactions. Financial Accounting Course
08
How to Prepare Financial Statements | Financial Accounting Course
09
Business structure: Partnership Versus Corporation Versus Proprietorship
10
General Ledger vs Chart of Accounts: Accounting Basics
11
T Accounts: Debit and Credit Simplified.
12
How to Prepare Journal Entries and Post to General Ledger.
13
Adjusting Journal Entries: Example. FAR CPA Exam.
►
Trial Balance Explained. Basic Accounting Course
15
Adjusting Entries Explained: Accruals, Deferrals & Prepaid Insurance
16
Prepaid Expenses | Deferral of Expense | Financial Accounting
17
Depreciation expense and Accumulated Depreciation. Financial Accounting
18
Unearned Revenues or Deferred Revenues. Financial Accounting.
19
Accrued expenses & Accrued Liabilities. Financial Accounting
20
Accrued Revenues. Financial Accounting
21
Closing Process. Financial Accounting
22
The 10 Columns Accounting worksheet. Financial Accounting
23
Classified Balance Sheet
24
Merchandising Accounting: Purchases, Discounts & FOB Explained
25
Accounting for Selling Merchandising Inventory. Financial Accounting Course.

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