You work for Creative Advertising as an assistant to the companys accountant. You are preparing a work
Question:
You work for Creative Advertising as an assistant to the company’s accountant. You are preparing a work sheet for the month of July. The trial balance totals are $127,750, and you have extended the account balances to the amount columns in the Balance Sheet and Income Statement sections. After adding the Balance Sheet and Income Statement columns and calculating net income, you find that the totals do not balance.
1. List the steps you would take to find the problem.
2. Provide a likely reason to explain why the net income amounts do not match.
Step by Step Answer:
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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