Step 5: Prepare the Unadjusted Trial Balance

Use the t account balances completed in the previous step to prepare the unadjusted trial balance portion of the Trial Balance tab in your workbook.

Step 6:

You will use the Adjusting Entries tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. Take the adjusting entries from this worksheet and enter them into the trial balance on the Steps 5 and 7 Trial Balance tab.

On September 30, the following adjustments must be made:

Depreciation of baking equipment transferred to company on 7/13. Assume month of depreciation in July using the straight-line method.

Accrue interest for note payable. Assume a full month of interest for July. (6% annual interest on $10,000 loan from parents.

Record insurance used for the year.

Actual baking supplies on-hand as of September 30^th is $1100.

Misc. supplies on-hand as of September 30th is $50.

Step 7:

Apply adjusting entries to the trial balance to create the adjusted trial balance.

Adjusting entries from Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance.