Student Name
ACC 201 - Financial Accounting
Professor Name
January 2026
A trial balance is a list of all general ledger account balances at a specific date. It serves as a verification tool to ensure that total debits equal total credits, confirming the mathematical accuracy of double-entry bookkeeping. According to Kieso, Weygandt, and Warfield (2023), the trial balance is prepared after posting all journal entries to the general ledger. The primary purpose is to verify that the accounting equation remains in balance. This principle originated with Luca Pacioli's double-entry bookkeeping system in 1494. While a balanced trial balance does not guarantee complete accuracy, it confirms that the fundamental accounting equation has been maintained (Warren, Reeve, & Duchac, 2022).
The trial balance occupies step six of the eight-step accounting cycle. It follows the posting of journal entries and precedes the preparation of adjusting entries. The Financial Accounting Standards Board (2023) requires that trial balances comply with Generally Accepted Accounting Principles (GAAP). A properly prepared trial balance enables accountants to identify and correct errors before they propagate through financial statements. Without this verification step, inaccurate financial statements could mislead stakeholders and violate regulatory requirements.
The general ledger is the master record of all financial transactions. It contains individual accounts for assets, liabilities, equity, revenues, and expenses. Each account maintains a running balance reflecting the cumulative effect of all posted transactions. For this assignment, account balances were extracted from a sample company's general ledger as of January 31, 2026. Accounts are organized in standard order: assets, liabilities, equity, revenues, and expenses. This structure facilitates trial balance preparation and aligns with financial statement presentation (Horngren, Sundem, & Stratton, 2023).
The selected accounts represent a typical small business with moderate transaction volume. Asset accounts include cash, accounts receivable, inventory, prepaid expenses, and fixed assets with accumulated depreciation. Liability accounts include accounts payable, salaries payable, and notes payable. The equity section contains owner's capital and drawings. Revenue and expense accounts reflect operational activities during the period. Each balance has been verified for accuracy as of the trial balance date. The American Institute of Certified Public Accountants (2023) emphasizes that proper account classification and accurate balance determination are essential prerequisites for trial balance preparation.
The following trial balance for TechVenture Solutions as of January 31, 2026 follows the standard three-column format:
| Account Name | Debit | Credit |
|---|---|---|
| Cash | $45,250.00 | |
| Accounts Receivable | $28,500.00 | |
| Merchandise Inventory | $62,000.00 | |
| Prepaid Insurance | $3,600.00 | |
| Office Equipment | $35,000.00 | |
| Accumulated Depreciation - Equipment | $7,000.00 | |
| Accounts Payable | $18,500.00 | |
| Salaries Payable | $5,200.00 | |
| Notes Payable (Long-term) | $25,000.00 | |
| Owner's Capital | $100,000.00 | |
| Owner's Drawings | $8,000.00 | |
| Sales Revenue | $185,000.00 | |
| Cost of Goods Sold | $95,000.00 | |
| Salaries Expense | $32,000.00 | |
| Rent Expense | $12,000.00 | |
| Utilities Expense | $4,800.00 | |
| Insurance Expense | $2,400.00 | |
| Depreciation Expense | $3,500.00 | |
| TOTALS | $332,050.00 | $332,050.00 |
The trial balance reflects all accounts from TechVenture Solutions' general ledger as of January 31, 2026. Accounts are listed in order of the accounting equation: assets, liabilities, equity, revenues, and expenses. Each balance was extracted directly from the general ledger T-accounts and entered in the appropriate debit or credit column. The trial balance serves as the foundation for subsequent accounting cycle steps, including adjusting entries and financial statement preparation.
Mathematical verification is critical in trial balance preparation. As shown in the table above, total debits equal total credits at $332,050.00. This equality confirms that the double-entry bookkeeping principle has been maintained throughout the recording process. According to Warren, Reeve, and Duchac (2022), when total debits equal total credits, it provides assurance that transactions were recorded with equal debits and credits. However, a balanced trial balance does not guarantee complete accuracy. Transposition errors, omitted transactions, or entries recorded in wrong accounts may not be detected by this verification method.
Achieving a balanced trial balance is essential for financial reporting. The Financial Accounting Standards Board (2023) requires that trial balances comply with GAAP standards. TechVenture Solutions' balanced trial balance indicates that accounting records are in mathematical equilibrium and ready for the next accounting cycle phase. The account balances reflect the company's financial position as of January 31, 2026: total assets of $167,350, total liabilities of $48,700, and owner's equity of $118,650 (after accounting for drawings). Revenue and expense accounts will be closed to the income statement at period end, ultimately affecting owner's equity through retained earnings.
The trial balance occupies step six of the eight-step accounting cycle. According to Horngren, Sundem, and Stratton (2023), the complete cycle consists of: (1) analyzing transactions and source documents, (2) recording journal entries, (3) posting entries to the general ledger, (4) preparing an unadjusted trial balance, (5) recording adjusting entries, (6) preparing an adjusted trial balance, (7) preparing financial statements, and (8) closing temporary accounts. The trial balance prepared in this assignment represents the unadjusted trial balance, which serves as a checkpoint before adjusting entries are recorded.
Positioning the trial balance before adjusting entries allows accountants to verify ledger accuracy before making adjustments for depreciation, accrued expenses, and prepaid items. The Internal Revenue Service (2024) emphasizes in Publication 334 that maintaining accurate trial balances throughout the accounting cycle is essential for proper tax reporting and compliance. Following the unadjusted trial balance, accountants record adjusting entries reflecting accrual basis accounting, then prepare an adjusted trial balance to verify those adjustments. The adjusted trial balance serves as the basis for preparing the income statement, statement of owner's equity, and balance sheet. This systematic approach ensures that financial statements are prepared from verified, accurate data and comply with standards established by the Financial Accounting Standards Board.
The trial balance is an indispensable tool in accounting, providing a systematic method to verify the mathematical accuracy of the general ledger before financial statement preparation. The trial balance prepared for TechVenture Solutions demonstrates proper application of accounting principles and successful maintenance of the fundamental accounting equation throughout the recording process. The balanced trial balance, with total debits equaling total credits at $332,050.00, indicates that accounting records are in proper order and ready for the next accounting cycle phases (Kieso et al., 2023).
Accurate trial balance preparation extends beyond mathematical verification. The trial balance demonstrates a company's commitment to maintaining reliable financial records, essential for stakeholder confidence and regulatory compliance. The American Institute of Certified Public Accountants (2023) identifies proper trial balance preparation as a fundamental competency for all accounting professionals. The trial balance for TechVenture Solutions reflects careful attention to detail, proper account classification, and accurate balance determination. As the company proceeds through remaining accounting cycle steps, including adjusting entries and financial statement preparation, the foundation established by this accurate trial balance ensures that all subsequent financial reporting is based on verified, reliable data.
American Institute of Certified Public Accountants. (2023). AICPA accounting standards. AICPA.
Financial Accounting Standards Board. (2023). Accounting standards codification (ASC 210) - Balance sheet. FASB.
Horngren, C. T., Sundem, G. L., & Stratton, W. O. (2023). Introduction to management accounting (16th ed.). Pearson Education.
Internal Revenue Service. (2024). Publication 334: Tax guide for small business. U.S. Department of Treasury. https://www.irs.gov/publications/p334
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2023). Intermediate accounting (18th ed.). John Wiley & Sons.
Warren, C. S., Reeve, J. M., & Duchac, J. E. (2022). Accounting (27th ed.). Cengage Learning.
"I was struggling with ACC 201 and the trial balance assignment seemed impossible. The expert not only completed the assignment perfectly but explained every single step. Delivered 2 days early and the quality was exceptional. Highly recommend!"
"The trial balance assignment was due in 5 days and I had no idea where to start. This service delivered a complete, well-researched assignment with proper citations in just 3 days. The formatting was perfect and the analysis was thorough. Great experience."
"I was worried about academic integrity but this service was completely transparent about their process. They provided a sample that helped me understand trial balance preparation better. The quality was A+ and they answered all my questions promptly."
"As a working student, I don't have time to spend hours on accounting assignments. This service provided a comprehensive trial balance assignment that met all requirements. The work was accurate, well-formatted in APA style, and delivered on time."
"I was skeptical at first but the expert demonstrated real knowledge of ACC 201 concepts. They explained why certain accounts were classified as debits vs credits, which helped me learn. The final assignment was excellent and I got an A."
Everything you need to know about our process, safety, and guarantees.
A trial balance is a list of all the balances in the general ledger accounts. It serves as a check to ensure that for every transaction recorded as a debit in one account, there is a corresponding credit in another account. The trial balance is important because it verifies the mathematical accuracy of the accounting records before financial statements are prepared. If total debits equal total credits, it indicates that the double-entry bookkeeping system has been properly maintained.
To prepare a trial balance, follow these steps: (1) List all accounts from the general ledger. (2) Record the final debit or credit balance of each account. (3) Arrange the accounts in a specific order: assets, liabilities, equity, revenue, and expenses. (4) Sum the total debits and total credits. (5) Ensure that total debits equal total credits. If they don't match, there may be errors in the journal entries or posting to the ledger that need to be corrected.
The general rule is that assets and expenses are debit accounts, while liabilities, equity, and revenues are credit accounts. When an account has a debit balance, it appears in the debit column of the trial balance. When an account has a credit balance, it appears in the credit column. For example, Cash (an asset) would have a debit balance, while Accounts Payable (a liability) would have a credit balance.
If total debits do not equal total credits, there is an error somewhere in the accounting records. Common errors include: transposition errors (writing numbers in wrong order), posting entries to the wrong account, recording only the debit or only the credit of a transaction, or arithmetic errors in calculating account balances. You must locate and correct these errors before proceeding to prepare financial statements.
An unadjusted trial balance is prepared after posting all journal entries from the general journal to the general ledger, but before making adjusting entries. An adjusted trial balance is prepared after adjusting entries have been recorded and posted. Adjusting entries account for items like depreciation, accrued expenses, and prepaid items that need to be recorded under the accrual basis of accounting.
Yes, a balanced trial balance does not guarantee that all transactions were recorded correctly. Certain types of errors will not be detected by a trial balance, such as: omitting a transaction entirely, recording a transaction in the wrong account (but with correct debit/credit), or recording the same transaction twice. A balanced trial balance only confirms that debits equal credits; it does not verify the accuracy of individual transactions.
The trial balance is step six of the eight-step accounting cycle. After posting all journal entries to the general ledger, the unadjusted trial balance is prepared to verify accuracy. Then adjusting entries are recorded, and an adjusted trial balance is prepared. Finally, the adjusted trial balance is used as the basis for preparing the financial statements: the income statement, statement of owner's equity, and balance sheet.
Yes, we can provide your trial balance assignment in multiple formats including Word documents, PDF, and Excel spreadsheets with formulas. We ensure that all calculations are accurate and the formatting meets your professor's requirements. You can specify your preferred format when you submit your assignment details.
Absolutely. Our team includes certified accountants and accounting instructors with extensive experience in ACC 201 - Financial Accounting courses. They have completed hundreds of trial balance assignments, general ledger analyses, and other accounting cycle assignments. Each expert is thoroughly vetted and specializes in specific accounting topics to ensure quality work.
Our assignments are written to meet or exceed A-grade standards (90-100%). We follow all assignment requirements, use proper APA formatting, include comprehensive analysis, and ensure mathematical accuracy. However, the final grade depends on your professor's specific rubric and expectations. We guarantee that our work will be of professional quality and meet all stated assignment requirements.