Balance Sheet Current Assets from Trial Balance 12

Hello in this lecture, we’re going to create the current asset section of the balance sheet, we’re going to create this current asset section from a trial balance, we’re going to piece together the financial statements piece by piece as we go through a series of lectures, the trial balance being here at this is going to be the adjusted trial balance. And what will happen is we will then find a home for all of the accounts on the financial statements. Once we then do that, that means that we have then converted this from the double entry accounting system being in the format of debits minus credits equaling zero or debits equaling the credits to the assets equals liabilities plus the owner’s equity, basically the accounting equation, which is reflected on the balance sheet. So we’re going to start off by doing the current assets section, which will just be this part we’re going to find a home for these first few accounts.

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Adjusting Entry Insurance 9

Hello in this lecture, we’re going to record the adjusting entry related to insurance, we’re going to record the transaction up here on the left hand side and then post that to the trial balance on the right hand side, the trial balance being in the format of assets in green liabilities in orange. Then we have the equity section in light blue and the income statement, including revenue and expenses in the darker blue. We will start off by just identifying the accounts that will be affected and then talk about why they will be affected. So we know that we have the adjusting entries. Remember that adjusting entries should be kept separate in your head in that they do have the same characteristics of having debits and credits in at least two accounts affected however, they’re also all as of the end of the time period, either the end of the month or the end of the year.

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