Example of Journal Entries on T - Account and Trial Balance

Back to: Accounting & Taxation

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Hey everybody, welcome back to part two of chapter

two example. And in this video we are going to

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be taking what we did in the last video with the

journal entries and T tables, and more specifically,

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probably with the T tables and converting that 

into what we call an unadjusted trial balance.  

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As we will talk about in future chapters, what 

the accounting cycle is. There's a few spots  

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in there where we have to do these things is 

called a trial balance. And the travel one is  

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just kind of a check mechanism to make sure 

that our debits and our credits are equal.  

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Remember that's one of the big things that we have 

to have when we're doing double entry accounting.  

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I'm going to show you how to do that today. 

What we're going to do is we look at all of  

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our key table specifically and we're going to 

find our account balances for those two tables.  

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Some of these are going to be really easy because 

there's not much going on with them. Some of the  

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are going to be a little bit more challenging, 

especially cash. So Let's start with cash  

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first. So Let's start with cash first. Now what 

you want to do to find your account balance is  

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to add up all the debits and then out of all the 

credits and then subtract the two numbers. And  

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whatever the difference is, that's going to be 

your account balance. And it should go on this  

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side. That is the plus side, which is also 

the side that should have the higher amount.  

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So if you were to do this for cash and by the 

way, you want to pause this, stop it and try  

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this on your own. Please do. Because again, 

they'll let you know what you don't know  

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if you need help, whether or not. But what 

you do is you add up all of your credits,  

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you add up all of your debit, and when you do 

that, you should get a total of 200 and 9,000.  

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Then you're going to add up all of your credits. 

If you do that, you should get a total of 180,500.  

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Then you subtract the two and that will give you 

a total difference of 28 5 and it go again on the  

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debit side. So Let's start with on our trial 

balance to start with cash under the debit,  

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because this is a debited account. This is 

where my debit goes. I'm going to put 28  

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5. Alright, Let's go to the next one. I want to 

do a I'm going to do these as a specific order  

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just because this is how they naturally would go. 

A I'm going to take my 1 65. Subtract out 1 41.  

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That's going to give me a difference of 24,000. 

Again, that's going to go on the debit side.  

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I'm going to put that down. Alright. Next I'm 

going to do supplies. Supplies is pretty easy.  

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There's only two things I have 

to add up, which is 400 and 1,500  

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that's going to give me a total of 

1,900. Again, that's on the debit side.  

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I'm also going to put prepaid prepaid Super easy. 

There's only one thing I have to worry about,  

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and that's 24,000. Someone put that down. And then 

the same thing with Land. Land is going to have a  

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debited balance of 100,000. Right now. I'm going 

to move on to my liabilities accounts payable.  

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I'm going to subtract the two numbers 44 minus 

the 30. That's going to give me an accounts  

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payable balance of a credit of 14,000 member 

liabilities. The credit side is the normal side.  

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So 14,000 and then unearned revenue is going to 

be 18,000 because nothing's changed from that.  

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Now we go into the equity account. So we have 

common stock, common stock. We just add up  

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those two numbers that's going to give us 40,000 

to the credit. Retain earnings is going to be  

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10 4. Again, we haven't do anything for that 

one. So 10,400 dividends dividends is going to  

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be 5,000 towards the debit. Then we have 

consulting revenue of 165 on the credit,  

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then salaries expense 20,000 on the debit.  

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And then finally we have miscellaneous expense of 

44,000 on the debit. Now you're probably wondering  

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why did I go in this order? Right on. I just 

go in the order in which I have them on the T  

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table. These are the actual orders of 

the codification numbers that we have.  

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You don't have to use this. It can kind of go 

in any order because they all add up the same.  

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But once we get to this point, I'm going to take 

everything in the debit column and add it up.  

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And so if I do that, that's going to give me 200 

and 47,400. And then I'm really hoping a lot that  

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my credit column is going to add up to be the 

same. So when I add up my credit column and then  

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it is actually the same 200 and 47,400, we are on 

the right path. There's nothing that we have to  

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go back and review necessarily based on this. So 

again, this is just kind of a check stop to make  

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sure that we're doing things that we're supposed 

to be doing. Everything is adding up the way it  

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should be. And then that way we can move on to the 

next step of the accounting cycle. There you have  

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it. That is how you do an unadjusted TRA bonds. 

Now would not throw away this problem quite yet,  

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because in chapter three, we're actually going to 

finish the accounting cycle using this problem. So  

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this is still going to be very important for you 

to have the T tables and everything, because we're  

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just going to continue adding on to it. But for 

now, I hope you enjoyed this. You all take care.