The reason for preparing the adjusted trial balance is to ensure the adjusting entries were done correctly. This is the last step before preparing financial statements that are used by you, your ...

Post the resulting differences against the current year's adjusted trial balance. This will account for all book-tax differences that had accumulated prior to the current year.

Unadjusted vs. Adjusted Trial Balance When closing the books, companies prepare two trial balances: unadjusted (preliminary) and adjusted . The first trial balance is unadjusted—also called ...

Once a book is balanced, an adjusted trial balance can be completed. This trial balance has the final balances in all the accounts, and it is used to prepare the financial statements.