Hey everybody, welcome back to part two of chapter two example. And in this video we
are going to be taking what we did in the last video with the journal entries and T tables, and
more specifically, probably with the T tables and converting that into what we call an unadjusted
trial balance. As we will talk about in future chapters, what the accounting cycle is. There's
a few spots in there where we have to do these things is called a trial balance. And the travel
one is just kind of a check mechanism to make sure that our debits and our credits are equal.
Remember that's one of the big things that we have to have when we're doing double entry accounting.
I'm going to show you how to do that today. What we're going to do is we look at all of
our key table specifically and we're going to find our account balances for those two tables.
Some of these are going to be really easy because there's not much going on with them. Some of the
are going to be a little bit more challenging, especially cash. So Let's start with cash
first. So Let's start with cash first. Now what you want to do to find your account balance is
to add up all the debits and then out of all the credits and then subtract the two numbers. And
whatever the difference is, that's going to be your account balance. And it should go on this
side. That is the plus side, which is also the side that should have the higher amount.
So if you were to do this for cash and by the way, you want to pause this, stop
it and try this on your own. Please do. Because again, they'll let you know what you don't know
if you need help, whether or not. But what you do is you add up all of your credits,
you add up all of your debit, and when you do that, you should get a total of 200 and 9,000.
Then you're going to add up all of your credits. If you do that, you should get a total of 180,500.
Then you subtract the two and that will give you a total difference of 28 5 and it go again on the
debit side. So Let's start with on our trial balance to start with cash under the debit,
because this is a debited account. This is where my debit goes. I'm going to put 28
5. Alright, Let's go to the next one. I want to do a I'm going to do these as a specific order
just because this is how they naturally would go. A I'm going to take my 1 65. Subtract out 1 41.
That's going to give me a difference of 24,000. Again, that's going to go on the debit side.
I'm going to put that down. Alright. Next I'm going to do supplies. Supplies is pretty easy.
There's only two things I have to add up, which is 400 and 1,500
that's going to give me a total of 1,900. Again, that's on the debit side.
I'm also going to put prepaid prepaid Super easy. There's only one thing I have to worry about,
and that's 24,000. Someone put that down. And then the same thing with Land. Land is going to have a
debited balance of 100,000. Right now. I'm going to move on to my liabilities accounts payable.
I'm going to subtract the two numbers 44 minus the 30. That's going to give me an accounts
payable balance of a credit of 14,000 member liabilities. The credit side is the normal side.
So 14,000 and then unearned revenue is going to be 18,000 because nothing's changed from that.
Now we go into the equity account. So we have common stock, common stock. We just add up
those two numbers that's going to give us 40,000 to the credit. Retain earnings is going to be
10 4. Again, we haven't do anything for that one. So 10,400 dividends dividends is going to
be 5,000 towards the debit. Then we have consulting revenue of 165 on the credit,
then salaries expense 20,000 on the debit.
And then finally we have miscellaneous expense of 44,000 on the debit. Now you're probably wondering
why did I go in this order? Right on. I just go in the order in which I have them on the T
table. These are the actual orders of the codification numbers that we have.
You don't have to use this. It can kind of go in any order because they all add up the same.
But once we get to this point, I'm going to take everything in the debit column and add it up.
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
my credit column is going to add up to be the same. So when I add up my credit column and then
it is actually the same 200 and 47,400, we are on the right path. There's nothing that we have to
go back and review necessarily based on this. So again, this is just kind of a check stop to make
sure that we're doing things that we're supposed to be doing. Everything is adding up the way it
should be. And then that way we can move on to the next step of the accounting cycle. There you have
it. That is how you do an unadjusted TRA bonds. Now would not throw away this problem quite yet,
because in chapter three, we're actually going to finish the accounting cycle using this problem. So
this is still going to be very important for you to have the T tables and everything, because we're
just going to continue adding on to it. But for now, I hope you enjoyed this. You all take care.