1. $ $ $ $ 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. $ $

2. $ $ $ $ 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

3. $ $ $ $ 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. $ $

4. 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. $ $

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

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