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T Account and Trial Balance - Example 2

Written by Jason Gordon

Updated at April 7th, 2022

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Example of Journal Entries on T - Account and Trial Balance

Back to: Accounting & Taxation

0:00:00.560,0:00:06.320

Hey everybody, welcome back to part two of chapter

two example. And in this video we are going to


0:00:06.320,0:00:10.720

be taking what we did in the last video with the

journal entries and T tables, and more specifically,


0:00:10.720,0:00:15.840

probably with the T tables and converting that 

into what we call an unadjusted trial balance.  


0:00:15.840,0:00:20.480

As we will talk about in future chapters, what 

the accounting cycle is. There's a few spots  


0:00:20.480,0:00:23.680

in there where we have to do these things is 

called a trial balance. And the travel one is  


0:00:23.680,0:00:27.680

just kind of a check mechanism to make sure 

that our debits and our credits are equal.  


0:00:28.480,0:00:32.240

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

to have when we're doing double entry accounting.  


0:00:32.800,0:00:36.080

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

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


0:00:36.080,0:00:41.760

our key table specifically and we're going to 

find our account balances for those two tables.  


0:00:41.760,0:00:44.960

Some of these are going to be really easy because 

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


0:00:44.960,0:00:48.880

are going to be a little bit more challenging, 

especially cash. So Let's start with cash  


0:00:48.880,0:00:52.160

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

you want to do to find your account balance is  


0:00:52.160,0:00:57.920

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

credits and then subtract the two numbers. And  


0:00:57.920,0:01:01.440

whatever the difference is, that's going to be 

your account balance. And it should go on this  


0:01:01.440,0:01:05.120

side. That is the plus side, which is also 

the side that should have the higher amount.  


0:01:05.840,0:01:09.840

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

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


0:01:09.840,0:01:12.640

this on your own. Please do. Because again, 

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


0:01:13.200,0:01:16.960

if you need help, whether or not. But what 

you do is you add up all of your credits,  


0:01:17.760,0:01:22.720

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

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


0:01:23.760,0:01:29.360

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

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


0:01:30.240,0:01:36.800

Then you subtract the two and that will give you 

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


0:01:36.800,0:01:42.000

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

balance to start with cash under the debit,  


0:01:42.000,0:01:46.000

because this is a debited account. This is 

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


0:01:47.040,0:01:51.040

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

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


0:01:51.040,0:01:57.120

just because this is how they naturally would go. 

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


0:01:57.680,0:02:02.000

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

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


0:02:02.000,0:02:05.920

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

going to do supplies. Supplies is pretty easy.  


0:02:06.560,0:02:09.840

There's only two things I have 

to add up, which is 400 and 1,500  


0:02:09.840,0:02:13.120

that's going to give me a total of 

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


0:02:13.840,0:02:18.480

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

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


0:02:18.480,0:02:23.280

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

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


0:02:23.280,0:02:29.920

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

to move on to my liabilities accounts payable.  


0:02:30.560,0:02:34.720

I'm going to subtract the two numbers 44 minus 

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


0:02:34.720,0:02:42.080

payable balance of a credit of 14,000 member 

liabilities. The credit side is the normal side.  


0:02:42.080,0:02:47.520

So 14,000 and then unearned revenue is going to 

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


0:02:48.880,0:02:53.280

Now we go into the equity account. So we have 

common stock, common stock. We just add up  


0:02:53.280,0:02:59.120

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

to the credit. Retain earnings is going to be  


0:02:59.680,0:03:06.160

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

one. So 10,400 dividends dividends is going to  


0:03:06.160,0:03:13.920

be 5,000 towards the debit. Then we have 

consulting revenue of 165 on the credit,  


0:03:16.400,0:03:19.440

then salaries expense 20,000 on the debit.  


0:03:21.520,0:03:27.600

And then finally we have miscellaneous expense of 

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


0:03:27.600,0:03:31.040

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

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


0:03:31.040,0:03:35.520

table. These are the actual orders of 

the codification numbers that we have.  


0:03:36.640,0:03:40.000

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

in any order because they all add up the same.  


0:03:40.560,0:03:45.520

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

everything in the debit column and add it up.  


0:03:45.520,0:03:53.120

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  


0:03:53.120,0:03:58.240

my credit column is going to add up to be the 

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


0:03:58.240,0:04:03.120

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

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


0:04:03.120,0:04:11.120

go back and review necessarily based on this. So 

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


0:04:11.120,0:04:16.000

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

to be doing. Everything is adding up the way it  


0:04:16.000,0:04:20.320

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

next step of the accounting cycle. There you have  


0:04:20.320,0:04:25.440

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

Now would not throw away this problem quite yet,  


0:04:25.440,0:04:29.600

because in chapter three, we're actually going to 

finish the accounting cycle using this problem. So  


0:04:29.600,0:04:34.000

this is still going to be very important for you 

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


0:04:34.000,0:04:39.760

just going to continue adding on to it. But for 

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

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