Question

1.Where do the accounts from the Normal monthly transactions come from, is the journal entries?(This is for the trial balance worksheet)

2. Where do we get the unadjusted trial balance from? Like where do the number come from?

Answer 1

1.) Yes, normal monthly transactions come from journal entries.

The entries are posted and then these entries are transferred to the ledger accounts the accounts debited or credited during journal entries. These accounts are only the transactional entries made under journal during the period.

2.) Unadjusted trial balance comes from the ledger balances at the end of the period. The accounts have either debit balance or credit balance at the end of the period, and these balances are transferred to the trial balance. The numbers come from the balances and the unadjusted trial balance is used as the strating point for analyzing account balances and making adjusting entries if required. This process verifies that the entries made were correct or not qnd if not the adjusting entries for the correction or reconcilliation are made.