$ $ $ $ Section 3 Preparing a Trial Balance What You’ll Learn Chapter 7 $ Section 3 Preparing a Trial Balance $ What You’ll Learn The purpose of a trial balance. How to prepare a trial balance. How to identify and locate trial balance errors. $ $

$ $ $ $ Why It’s Important Key Terms Chapter 7 proving the ledger Section 3 Preparing a Trial Balance (con’t.) $ Why It’s Important To present accurate financial statements, the accounts must be in balance. The purpose of a trial balance is to prove that the general ledger is in balance. $ $ Key Terms proving the ledger trial balance transposition error $ slide error correcting entry

$ $ $ $ The Fifth Step in the Accounting Cycle: The Trial Balance Chapter 7 Section 3 Preparing a Trial Balance (con’t.) $ The Fifth Step in the Accounting Cycle: The Trial Balance $ A formal way to prove that debits equal credits is to prepare a trial balance. Prepared on two-column accounting stationery. Account numbers are listed in the far left column. $ $

Chapter 7 Section 3 Preparing a Trial Balance (con’t.) $ The Fifth Step in the Accounting Cycle: The Trial Balance (con’t.) $ Account names are listed in the next column. Debit balances are entered in the first amount column. Credit balances are entered in the second amount column. $ $

Chapter 7 Section 3 Preparing a Trial Balance (con’t.) $ The Fifth Step in the Accounting Cycle: The Trial Balance (con’t.) $ $ $

$ $ $ $ Check Your Understanding Chapter 7 Xxxx Section 3 Preparing a Trial Balance (con’t.) $ Check Your Understanding $ Xxxx $ $