[brentyg1]

If you were estimating taxes on income before tax..
1) you have to do income statement before the estimation could be calculated..
2) would you go back and include this amount in the unadjusted and then the adjustments to get final figure for the adjusted trial balance? :confused:

[morgaine300]

You wouldn't bother going back to an unadjusted trial balance. What you want to call "unadjusted" and "adjusted" isn't very realistic. What is realistic is to do an unadjusted one. Then go through the books, figure out some adjustments that need done, get those entered, run another trial balance (partially adjusted), go through some more junk and make some more adjustments, run another trial balance, etc. In real life, it can be a process.

Once taxes are figured, yeah, you'll have to make another adjusting entry to get those figures caught up. But in real life there isn't any reason at that point to bother with doing another trial balance. You do have to re-do statements to reflect those final numbers. Once numbers are final, there isn't much point in going backwards to do trial balances.

That's real life. If it's class... who knows what they want. Most books don't have people running off unadjusted and adjusted trial balances anymore at that point.

[brentyg1]

I am working with the ten column spreadsheet and that is the way it is classified..
And I agree with making a adjustment entry and not touching the "unadjusted" because those are really your starting numbers so they shouldn't be altered.. thanks for the support..