Which of the following lists general ledger account balances at the end of a reporting period, before any adjusting entries are made?

Which of the following lists general ledger account balances at the end of a reporting period, before any adjusting entries are made?

• A. Balance Sheet
• B. Statement of Equity
• C. Unadjusted Trial Balance
• D. Adjusted Trial Balance

Answer: (C)

Where the general ledger balances are presented before any adjusting entries are made. The unadjusted trial balance is the listing of every ledger account with its ending balance as of the reporting date, prior to making adjusting entries. It’s used to check that total debits equal total credits before any adjustments are recorded. After adjusting entries are posted, you produce the adjusted trial balance, which reflects updated balances and serves as the basis for preparing the financial statements. The balance sheet and the statement of equity are financial statements, not lists of ledger balances. So the unadjusted trial balance is the right way to show balances before adjustments.

Where the general ledger balances are presented before any adjusting entries are made.

The unadjusted trial balance is the listing of every ledger account with its ending balance as of the reporting date, prior to making adjusting entries. It’s used to check that total debits equal total credits before any adjustments are recorded. After adjusting entries are posted, you produce the adjusted trial balance, which reflects updated balances and serves as the basis for preparing the financial statements. The balance sheet and the statement of equity are financial statements, not lists of ledger balances. So the unadjusted trial balance is the right way to show balances before adjustments.