Ch2. Video 9 - JE and T-Account:Trial Balance Example Part 2

This video tutorial explains how to create an unadjusted trial balance using T tables. It covers the steps to calculate account balances by adding debits and credits, and then compiling these into a trial balance. The tutorial emphasizes the importance of ensuring that debits and credits are equal, serving as a check mechanism in the accounting cycle. The video concludes with a verification of the trial balance and a note on its relevance for future chapters.

What is the primary purpose of a trial balance in accounting?

• To prepare financial statements

• To record transactions

• To ensure debits and credits are equal

• To calculate net income

When calculating the account balance for cash, what is the correct method?

• Subtract credits from debits

• Subtract debits from credits

• Multiply debits by credits

• Add debits and credits together

Which account is typically debited when calculating the trial balance?

• Unearned Revenue

• Cash

• Accounts Payable

• Consulting Revenue

What is the normal balance side for liabilities?

• Neither

• Both

• Credit

• Debit

Why is it important to ensure that the total debits equal total credits in a trial balance?

• To prepare for tax filing

• To ensure all transactions are recorded

• To complete the accounting cycle

• To verify the accuracy of financial statements