- The adjusted trial balance provided is for Express Handling and Delivery as of December 31, 2019.
- All adjusting entries have already been recorded, as stated in the accompanying text.
- The total debits and credits in the trial balance are equal at $7,290,800, indicating that the ledger is in balance after adjustments.
- The trial balance includes asset accounts (Cash, Accounts Receivable, Supplies, Prepaid Insurance, Land, Building, Equipment), contra-asset accounts (Accumulated Depreciation), liability accounts (Accounts Payable, Wages Payable, Interest Payable, Unearned Service Revenue, Long-term Debt), equity accounts (M. Express, Capital; M. Express, Withdrawal), revenue (Service Revenue), and expense accounts (Wages Expense, Utilities Expense, Depreciation Expenses, Supplies Expense, Insurance Expense, Interest Expense).
- Since the trial balance is adjusted and balanced, no further journal entries are required to correct or adjust the accounts for the period ending December 31, 2019.
- The next step in the accounting cycle would be to prepare financial statements (Income Statement, Statement of Owner’s Equity, and Balance Sheet) using the balances from this adjusted trial balance.
Parent Tip: Review the logic above to help your child master the concept of accounting worksheet problems.
