{"id":567,"date":"2020-05-21T13:06:16","date_gmt":"2020-05-21T12:06:16","guid":{"rendered":"https:\/\/bakkah400.com\/?p=567"},"modified":"2023-08-19T19:08:50","modified_gmt":"2023-08-19T18:08:50","slug":"how-to-prepare-a-post-closing-trial-balance","status":"publish","type":"post","link":"https:\/\/bakkah400.com\/index.php\/2020\/05\/21\/how-to-prepare-a-post-closing-trial-balance\/","title":{"rendered":"How to prepare a post-closing trial balance"},"content":{"rendered":"<div id=\"toc\" style=\"background: #f9f9f9;border: 1px solid #aaa;display: table;margin-bottom: 1em;padding: 1em;width: 350px;\">\n<p class=\"toctitle\" style=\"font-weight: 700;text-align: center;\">Content<\/p>\n<ul class=\"toc_list\">\n<li><a href=\"#toc-0\">How Do You Match a Trial Balance?<\/a><\/li>\n<li><a href=\"#toc-1\">Service Business Accounting Mock QE.docx<\/a><\/li>\n<li><a href=\"#toc-2\">What Is the Accounting Cycle?<\/a><\/li>\n<li><a href=\"#toc-3\">Who uses a trial balance?<\/a><\/li>\n<li><a href=\"#toc-4\">Close your trial balance<\/a><\/li>\n<li><a href=\"#toc-5\">Closing the Cycle<\/a><\/li>\n<li><a href=\"#toc-6\">How Reversing Entries Are Used<\/a><\/li>\n<\/ul>\n<\/div>\n<p><img decoding=\"async\" class='wp-post-image' style='display: block;margin-left:auto;margin-right:auto;' src=\"https:\/\/personal-accounting.org\/wp-content\/uploads\/2022\/02\/yamaha-precision-propellers-industries-careers-83b7.jpg\" width=\"256px\" alt=\"a post closing trial balance should be prepared\"\/><\/p>\n<p>You receive $1,500 in cash for classes on August 1. Of this amount, $1,000 is for an initiation fee. The remainder is for 2-month passes allowing unlimited classes in August and September. You are worried about money, so your Uncle Rafael makes you an offer.<\/p>\n<div itemScope itemProp=\"mainEntity\" itemType=\"https:\/\/schema.org\/Question\">\n<div itemProp=\"name\">\n<h3>Should a post closing trial balance be prepared before the financial statements are prepared?<\/h3>\n<\/div>\n<div itemScope itemProp=\"acceptedAnswer\" itemType=\"https:\/\/schema.org\/Answer\">\n<div itemProp=\"text\">\n<p>The Post Closing Trial Balance should be prepared after the Income Statement is prepared but before the Balance Sheet is prepared. Adjusting entries should be entered into the General Journal and posted to the General Ledger accounts after preparing a Pre-Closing Trial Balance.<\/p>\n<\/div><\/div>\n<\/div>\n<p>Notice how we start with the unadjusted trial balance in each account and add any debits on the left and any credits on the right. As we can see from the above example, the debit and the credit columns balances are matching. This means that there is no error while posting the closing entries to their individual accounts and then listing those account balances on the post-closing trial balance. A post-closing trial balance will be formatted the same as the other two types of trial balances that have already been discussed. Like an unadjusted or  an adjusted trial balance, it will have accounts listed in order of either their account numbers or in the order they appear on the balance sheet. The order that will follow will be assets first, then liabilities and finally ending off with equity.<\/p>\n<h2 id=\"toc-0\">How Do You Match a Trial Balance?<\/h2>\n<p>The post-closing trial balance for Printing Plus is shown in . The balance in the supplies account before adjustment at the end of the year is $5,330. Journalize the adjusting entry if the amount of supplies on hand at the end of the year is $1,875. The post-closing trial balance is considered to&#8230; Here are some instances of errors in the trial balance. Once you discover your error, repeat steps three through five to see whether your numbers now match.<\/p>\n<ul>\n<li>The word \u201cpost\u201d in this instance means \u201cafter.\u201d You are preparing a trial balance after the closing entries are complete.<\/li>\n<li>Prepare income statement, statement of retained earnings, classified balance sheet, closing entries, and post-closing trial balance.<\/li>\n<li>Prepare a post-closing trial balance at April 30.<\/li>\n<li>It lists all of the ledger, both general journal and special, accounts and their debit or credit balances to determine that debits equal credits in the recording process.<\/li>\n<\/ul>\n<p>Since Enron and the accounting scandals of the early 2000s, this practice has been prohibited. The types of adjusting entries are prepayments, accrual, estimates, and inventory. Since accountants and bookkeepers often <a href=\"https:\/\/personal-accounting.org\/is-the-post-closing-trial-balance-mandatory-as-a\/\">a post closing trial balance should be prepared<\/a> need to trace the origin of a ledger entry, they use cross-indexing. In cross-indexing a notation is made for each entry that indicates which general or special journal account the general ledger entry came from.<\/p>\n<h2 id=\"toc-1\">Service Business Accounting Mock QE.docx<\/h2>\n<p>Hence, you will not see any nominal account in the post-closing trial balance. In the first closing entry, Service Revenue was  debited. Before that, it had a credit balance of 9,850 as seen in the adjusted trial balance above.<\/p>\n<p>These account balances do not roll over into the next period after closing. The closing process reduces revenue, expense, and dividends account balances to zero so they are ready to receive data for the next accounting period. Permanent \u2013 balance sheet accounts including assets, liabilities, and most equity accounts.<\/p>\n<h2 id=\"toc-2\">What Is the Accounting Cycle?<\/h2>\n<p>The purpose of the trial balance is to check the mathematical accuracy of the accounting records and ensure that the total debits equal the total credits. If they do not match, it indicates that there is an error in the accounting records that needs to be corrected. The process is the same as the previous trial balances. Now the ledger accounts just have post closing entry totals. The process of closing the temporary accounts is often referred to as closing the books. Only revenue, expense, and dividend accounts are closed\u2014not asset, liability, Capital Stock, or Retained Earnings accounts.<\/p>\n<div style='text-align:center'><iframe width='560' height='313' src='https:\/\/www.youtube.com\/embed\/CXiKLtb7tqI' frameborder='0' alt='a post closing trial balance should be prepared' allowfullscreen><\/iframe><\/div>\n<div itemScope itemProp=\"mainEntity\" itemType=\"https:\/\/schema.org\/Question\">\n<div itemProp=\"name\">\n<h3>When should the post closing trial balance be prepared?<\/h3>\n<\/div>\n<div itemScope itemProp=\"acceptedAnswer\" itemType=\"https:\/\/schema.org\/Answer\">\n<div itemProp=\"text\">\n<p>Post-closing trial balance: The post-closing trial balance is prepared after closing entries have been posted to the ledger. This trial balance only includes permanent accounts.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Content How Do You Match a Trial Balance? Service Business Accounting Mock QE.docx What Is the Accounting Cycle? Who uses a trial balance? Close your trial balance Closing the Cycle How Reversing Entries Are Used You receive $1,500 in cash for classes on August 1. Of this amount, $1,000 is for an initiation fee. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/posts\/567"}],"collection":[{"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/comments?post=567"}],"version-history":[{"count":2,"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/posts\/567\/revisions"}],"predecessor-version":[{"id":3664,"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/posts\/567\/revisions\/3664"}],"wp:attachment":[{"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/media?parent=567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/categories?post=567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bakkah400.com\/index.php\/wp-json\/wp\/v2\/tags?post=567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}