USA Trial Balance for Financial Statements-HELP!

[denisse]

Good Afernoon:

I am completely new to accounting and my first assignment is due this week! In this assignment I am given a unadjusted trial balance and adjustments. I already adjusted the trial balance and now I have to create the financial statements. The instructions says: "consider both the unadjusted and adjusted trial balances when creating the financial statements". So, do I use the adjusted trial balance, the unadjusted trial balance or both for my financial statements? I appreciate any response that can enlighten me! Thanks in advance.

 

[kirby]

The adjusted trial balance is THEE source of the creation of the financial statements. All I can think of that "consider" instruction was it was meant to throw you off target.

 

[Fidget]

Sounds like it's asking you to point out where you've made adjustments to figures you're including in your financial statements. So base the figures you use in your financial statements on your adjusted trial balance and either show on each line, or in notes at the bottom of your statements, any adjustments you've made.

Showing them on each line is quicker. So if your unadjusted trial balance has, say, rent of $1200, but an adjustment for $200 is needed for a prepayment, then it's quicker to show it on the line in your profit/loss account as:

Rent (1200-200) $1000

..than it is to prepare your statements then do notes under them to explain the adjustments.