Chapter 4: Completing the Accounting Cycle

The end of period spreadsheet is useful in preparing an Adjusted Trial Balance from which the three Financial Statements can be prepared. Please indicate the results in the adjusted Trial Balance under the following circumstances. Please provide an example.

a. An account has a debit balance. The adjustment requires a credit to that account. The debit amount is higher than the credit amount. Is the result in the Adjusted Trial Balance a debit or credit? Please provide an example.

b. An account has a debit balance. The adjustment requires a credit to that account. The credit amount is higher than the debit amount. Is the result in the Adjusted Trial Balance a debit or credit? Please provide an example.

c. An account has a credit balance. The adjustment requires a credit to that account. Is the result in the Adjusted Trial Balance a debit or credit? Please provide an example.

d. An account has a debit balance. The adjustment requires a debit to the account. The debit amount is higher. Is the result in the Adjusted Trial Balance a debit or credit? Please provide and example.