Adjusted Trial Balance

An Adjusted Trial Balance is a list of the balances of ledger accounts which is created after the preparation of adjusting entries. Adjusted trial balance contains balances of revenues and expenses along with those of assets, liabilities and equities. Adjusted trial balance can be used directly in the preparation of the statement of changes in stockholders' equity, income statement and the balance sheet. However it does not provide enough information for the preparation of the statement of cash flows.

The format of an adjusted trial balance is same as that of unadjusted trial balance.

Example

The following adjusted trial balance was prepared after posting the adjusting entries of Company A to its general ledger and calculating new account balances:

Company A
Adjusted Trial Balance
January 31, 2010
	Debit	Credit
Cash	$20,430	−
Accounts Receivable	5,900	−
Office Supplies	4,320	−
Prepaid Rent	24,000	−
Equipment	80,000	−
Accumulated Depreciation	−	$1,100
Accounts Payable	−	5,200
Utilities Payable	−	3,964
Unearned Revenue	−	1,000
Interest Payable	−	150
Notes Payable	−	20,000
Common Stock	−	100,000
Service Revenue	−	85,600
Wages Expense	38,200	−
Supplies Expense	18,480	−
Rent Expense	12,000	−
Miscellaneous Expense	3,470	−
Electricity Expense	2,470	−
Telephone Expense	1,494	−
Depreciation Expense	1,100	−
Interest Expense	150	−
Dividend	5,000	−
Total	$217,014	$217,014

The totals of an adjusted trial balance must be equal. Any difference indicates that there is some error in the journal entries or in the ledger or in the calculations.