A trial balance is a listing of ledger accounts and their balances at the end of an accounting period. We can prepare the trial balance anytime, but they are usually prepared at the end of an accounting period (month, quarter, or year). The debit and credit column balances in a trial balance need to equal each other.
The unadjusted trial balance for MM TAX is a listing of all of the company's accounts with the ending balance for each account shown in the correct column (debit or credit). The unadjusted trial balance for MM TAX is shown below:
|
Ledger Accounts
| Debit | Credit |
|---|---|---|
| Cash | $19,900 |
-
|
| Accounts receivable | $2,500 |
-
|
| Office supplies | $50 |
-
|
| Prepaid insurance | $1,200 |
-
|
| Computer | $500 |
-
|
| Accounts payable |
-
| $50 |
| Unearned revenue |
-
| $2,000 |
| Common stock |
-
| $20,000 |
| Dividends | $200 |
-
|
| Fees earned |
-
| $2,500 |
| Salaries expense | $200 |
-
|
| Total | $24,550 | $24,550 |
The total of the debit column should equal the total of the credit column.