Journal Entries and T-Account - Trial Balance Pt 2

This video tutorial explains how to create an unadjusted trial balance by using T tables to calculate account balances. It covers the process of adding debits and credits, recording them in the trial balance, and verifying that the totals match. The tutorial emphasizes the importance of this step in the accounting cycle and hints at its future application in subsequent chapters.

What is the primary purpose of an unadjusted trial balance in accounting?

• To calculate net income

• To ensure debits and credits are equal

• To determine tax liabilities

• To prepare financial statements

When calculating the account balance for cash, what is the correct method?

• Subtract credits from debits

• Subtract debits from credits

• Add debits and credits together

• Multiply debits by credits

Which account is typically considered a liability?

• Accounts Receivable

• Supplies

• Accounts Payable

• Prepaid Expenses

What is the normal balance side for liabilities?

• Debit

• Neither side

• Both sides

• Credit

Why is it important to ensure that the debit and credit columns are equal in a trial balance?

• To prepare for tax filing

• To ensure all transactions are recorded

• To calculate the company's profit

• To verify the accuracy of financial statements