Okay, now that we've got our general ledger set up for GBD Fits, it's time to move onto creating our pre-closing trial balance. This will enable us to create our necessary financial statements (income statement, statement of owner's equity, & balance sheet).
Pre-closing trial balance explained
The purpose behind the pre-closing trial balance is simple:
The pre-closing trial balance enables us to ensure that our debits equal our credits before moving into preparing important financial statements (income statement, statement of owner's equity, & balance sheet).
Outside of that... it's pretty much the same exact thing as the general ledger, just without the journal entries.
How to create a pre-closing trial balance
I'm going to make this as simple as possible for you: Literally just take your general ledger accounts, and place each account's final balance...
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