From unadjusted to adjusted trial balance
Objective: Explain how adjustments flow into the adjusted trial balance.
Recommended first: Preparing a trial balance
After month-end adjustments — depreciation, accruals, prepaid expirations — new balances appear and totals change. Financial statements are always prepared from the adjusted trial balance.
Comparing the unadjusted and adjusted trial balances side by side shows exactly what the adjustments did. Every adjustment adds the same amount to both columns, so totals rise but stay equal. Accounts that appear only in the adjusted column — such as Depreciation Expense or Wages Payable — are usually created by adjustments. Statements prepared before adjustments overstate assets and profit in most businesses.
Check your work
- Did each adjustment change both columns by the same amount?
- Are new accounts explained by specific adjustments?
- Are statements prepared from the adjusted figures?
Accruing $250 of wages adds $250 to both columns: Wages Expense (debit) and Wages Payable (credit).
| Account | Debit | Credit |
|---|---|---|
| Wages Expense | $250.00 | |
| Wages Payable | $250.00 |
Common mistakes
✗ Preparing statements before adjustments.
✓ Profit and assets will be misstated.
Guided practice
Use hints freely here.
Item 1 of 1
Accrue unpaid wages
Corner Bean Café pays wages of $140.00 per working day every Friday. March 31 falls on a Tuesday, so 4 working days have been earned but not paid. Record the adjustment.
Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Adjust supplies after a count
The Supplies account shows $1,150.00 at Mar 31, 2026. A physical count finds $440.00 of supplies still on hand. Record the adjustment.
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Key terms
- Adjusted trial balance
- The trial balance after period-end adjustments.
References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.