Adjusting a Trial Balance Into a Classified Balance Sheet
Adjusting a trial balance into a classified balance sheet involves dividing out the balance sheet to show both the current and long-term debt and assets held by the company. Follow steps to adjust a trial sheet with information from an accounting professor in this free video on business.
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Hi. My name is Shawn Jones, adjunct professor at Argosy University. Today we're talking about adjusting the trial balance to be able to make entries into a classified balance sheet. Basically what this means is dividing out the balance sheet to show both the current and long term debt and assets which are held by the company. This is best seen by the example shown here by XYZ Corporation. So in other words our trial balance, or the posting entries taken from our trial balance need to be modified or adjusted to be able to make these entries into these categories or these accounts listed on the balance sheet. As you can see in the asset section, you'll see current assets broken down by cash, short term investments along with long term investments that have been made by the company. As we go down into the liabilities and stockholders equity, you can see its current or short term liabilities along with its long term liabilities or debts in which it owes. For more information about this topic please visit our website, argosy.edu. There you can find our phone number or an address to come and visit our Salt Lake City campus.