An Unadjusted Trial Balance is a balance of entries that have been implemented over an extended period of time without any adjustments being made. For example, the unadjusted trial balance above shows what the company has on file for each account. However, there were several entries that were not added to the accounts, therefore, making this an unadjusted trial balance.
Adjustment Entries
These entries are then used to make the necessary adjustments to the proper accounts to finalize the unadjusted trial balance to an Adjusted Trial Balance.
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