How to Determine Revenue From Unadjusted Trial Balances
A trial balance is a list of a company’s accounts and balances from its general ledger. A company uses a trial balance at the end of an accounting period to review its account balances and prepare financial statements. An unadjusted trial balance lists a company’s ledger accounts before it has made adjusting entries, which account for revenues and expenses that have been earned or incurred but not yet recorded. You can calculate your company’s total revenue from your unadjusted trial balance to help determine whether there is any revenue you have yet to record for the period.
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Instructions
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1
Find the product revenues account, listed in the accounts column of the unadjusted trial balance.
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Identify the dollar amount of product revenues, listed in the credit column of the unadjusted trial balance. For example, assume the unadjusted trial balance shows $100,000 in product revenue.
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Find the service revenues account, listed in the accounts column.
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4
Determine the dollar amount of service revenues, listed in the credit column. In this example, assume the unadjusted trial balance shows $40,000 in service revenues.
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Add together the amounts of product revenues and service revenues to determine the total revenues on the unadjusted trial balance. Continuing with the example, add $100,000 and $40,000 to get $140,000 in total revenues on the unadjusted trial balance. This means that you have booked $140,000 in revenues in your records before accounting for revenues that have yet to be recorded, such as revenue for which you have not billed a customer.
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Tips & Warnings
Because the revenue from your unadjusted trial balance is incomplete, using this amount on your financial statements would generate inaccurate results.
