Final answer:
The adjusted trial balance for Desousa Company is a list of all accounts with their final balances after adjustments. It includes two columns, one for debits and one for credits, and is used to verify balance equality before preparing financial statements.
Step-by-step explanation:
The question concerns the preparation of an adjusted trial balance, which is a step in the accounting cycle for the Desousa Company. The adjusted trial balance columns in a worksheet include a list of all the company’s accounts with their final balances after adjusting entries have been made. These adjustments typically could include accrued revenues or expenses, depreciation, and adjustments to inventory.
An adjusted trial balance is essentially a statement comprising of all accounts on the ledger with their respective debit or credit balances. This balance is used to verify the equality of total debits and credits after the adjustments and prepares the data for financial statement generation. The format for an adjusted trial balance includes a T-account style display, with the accounts titled on the left and the corresponding debits or credits in two columns.
Steps to Prepare Adjusted Trial Balance
Begin with the unadjusted trial balance.
Record adjusting entries in the general journal.
Post adjusting entries to the ledger accounts.
Prepare the adjusted trial balance by listing all accounts and their final balances.
It’s important to remember that the adjusted trial balance must show equal total debit and credit balances, reflecting the fundamental accounting equation.