Accounting Questions

[SithSolo1]

Ok, I'm horrible at accounting.

We were given the data from the previous month of a business and we have to go through the steps of the accounting cycle and prepare the current months unadjusted trial, adjusted trial, post-closing, etc. balances and statements.

My question is when creating the unadjusted trial balance do you take the previous months ending balance data into account?

Ex:
Ending balance of cash for Jan. was a Dr. of $2000.
Say for the month of Feb. you debited cash for $1800.

On the unadjusted trial balance ending Feb. 28 is cash gonna be $1800 or $3800?

If it is $1800, at what point in the current months accounting cycle would you take the previous month's ending data into account?

I know half you are probably laughing at the stupidity of the question but I really don't understand this stuff at all.

*Edit: I would like to thank Ns1 for both his/her help and not calling me an idiot for typing Feb. 31 as the last day of Feb. Thank You.

 

[Ns1]

1/31/01

Cash DR balance of 2k

2/28/08

Cash DR Balance of 3800 = your unadjusted balance up to that point

2/28/08

Cash DR 3800 + Any adjusting entries related to cash = your adjusted balance

 

[krunchykrome]

Originally posted by: Ns1
1/31/01

Cash DR balance of 2k

2/28/08

Cash DR Balance of 3800 = your unadjusted balance up to that point

2/28/08

Cash DR 3800 + Any adjusting entries related to cash = your adjusted balance

I have to pull out my principles of accounting textbook to double check this 😛

 

[Ns1]

Originally posted by: krunchykrome

Originally posted by: Ns1
1/31/01

Cash DR balance of 2k

2/28/08

Cash DR Balance of 3800 = your unadjusted balance up to that point

2/28/08

Cash DR 3800 + Any adjusting entries related to cash = your adjusted balance

I have to pull out my principles of accounting textbook to double check this 😛

ProSystems FX has already checked this =P

 

[SithSolo1]

Ok I have the unadjusted balance but I'm off by the Salaries Payable amount and I can't figure out why.

 

[Ns1]

Originally posted by: SithSolo1
Ok I have the unadjusted balance but I'm off by the Salaries Payable amount and I can't figure out why.

That doesn't really tell us much =P

 

[SithSolo1]

I dunno how to explain it:

I've totaled the debit and credit balances for the trial but the credit balance is 120 higher than the debit. Salaries payable is = to 120 for the month.

 

[krunchykrome]

Originally posted by: SithSolo1
I dunno how to explain it:

I've totaled the debit and credit balances for the trial but the credit balance is 120 higher than the debit. Salaries payable is = to 120 for the month.

Take a look at your GL; what is the other side of that entry?

 

[Ns1]

Originally posted by: SithSolo1
I dunno how to explain it:

I've totaled the debit and credit balances for the trial but the credit balance is 120 higher than the debit. Salaries payable is = to 120 for the month.

lol, sorry can't help you then, GL (good luck, not general ledger)

 

[SithSolo1]

Nm, I'm an idiot.

Sal Payable ending balance last month was 120. It got paid during the current month so it cancels out.