I am new to accounting and I have read my terms over and over but the meaning to "unadjusted trial balance" doesn't make since to me. Could someone explain. I fell like it just isn't going into the brain correctly!
Thank you:eek:
Dixie

From what I learned in school, Unajusted Trial balance is basically a listing of all the accounts, Balance Sheet and Income Statement, that haven't been changed due to Adjusting entries..

now adjusting entries are journal entries that you make after the month has ended so that you can update the trial balance for any entries that you missed during that month or haven't been included becasue something accrued (like your insurance has been partially used up and if you're using the accraul method you have to account for the lessing of the insurance account).. it's really hard to explain without being in person, i bet i confused you more..sorry just ask me more questions if you need to.

Actually, that's not a bad explanation. Any trial balance is just the balances that are currently in all of the accounts. When it's specifically refered to as unadjusted, it's prior to making any period-end adjustments. It doesn't really matter what exactly those adjustments are -- whether it be insurance or whatever. As long as no adjustments have been made, then it's an unadjusted trial balance.

As opposed to an adjusted trial balance, which is after any adjusting entries have been made, to reflect those new entries.

The adjusting entries themselves is a subject needing addressed separately since it can involve many different types of entries.