- Mar 19, 2001
- 7,740
- 11
- 81
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.
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.
Facebook
Twitter