1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-3 Preparing a Post-Closing Trial Balance Original created by M.C. McLaughlin, Thomson/South-Western Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 8-3 GENERAL LEDGER ACCOUNTS AFTER ADJUSTING AND CLOSING ENTRIES ARE POSTED page 213 After posting adjusting & closing entries, draw a line in both the balance debit & credit columns for any account that has a zero balance

3. CENTURY 21 ACCOUNTING © Thomson/South-Western POST-CLOSING TRIAL BALANCE 3 LESSON 8-3  After the closing entries are posted, businesses verify that debits equal credits in the general ledger accounts by preparing a trial balance  A trial balance prepared after the closing entries are posted is called a post closing trial balance  Only general ledger accounts with balances are included on a post closing trial balance  Permanent accounts  Assets, Liabilities, Owner’s Equity

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 8-3 8.Double rule 7.Record totals 6.Totals 5.Compare totals 4.Single rule 3.Account balances 2.Account titles 1.Heading POST-CLOSING TRIAL BALANCE 1 6 page 216 2 3 7 5 8 4

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 8-3 ACCOUNTING CYCLE FOR A SERVICE BUSINESS page 217 2 3 4 5 6 1 7 8 8.Prepare post-closing trial balance 7.Post adjusting and closing entries 6.Journalize adjusting and closing entries 5.Prepare financial statements 4.Prepare work sheet 3.Post 2.Journalize 1.Analyzes transactions The series of accounting activities included in recording financial information for a fiscal period is called an accounting cycle

6. CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 8-3 TERMS REVIEW post-closing trial balance accounting cycle page 219