The Life Starter
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Course Library · Lesson 5 of 6
Money · Guided lesson

Post balanced adjustments

About 22 minutes · 4 reading + 18 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
See this course’s project requirements

A fictional month-end adjustment packet with accruals, prepayments, depreciation, corrected trial balance and reconciled income statement.

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • An earned-revenue adjustment journal and posted balances.
  • An unpaid-wage accrual and later-settlement distinction.
  • A prepaid-rent release schedule and asset/expense posting.
  • A depreciation assumption schedule and gross/contra/net bridge.
  • A posted adjustment journal and complete adjusted trial balance.
  • An adjusted income statement, balance-sheet bridge and changed-earned-revenue check.

Review and revise

Use these criteria to check your work and choose what to improve.

  • Cutoff: each adjustment has period evidence.
  • Journal: debit/credit accounts and amounts are correct.
  • Posting: adjusted balances and totals reconcile.
  • Statements: profit and net assets obey the accounting equation.
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Before you begin

The idea in everyday life

Original fictional practice. All money is USD. No account, payment, personal record or outside participation is required. Original fictional month-end unadjusted trial balance: debit cash 5,000; accounts receivable 1,000; prepaid rent 1,200; equipment 2,400; wages expense 600. Credit accounts payable 800; unearned revenue 1,200; owner capital 6,200; service revenue 2,000. Each side totals 10,200. Month-end evidence:400 of advance service was earned;300 service earned but unbilled;250 wages incurred/unpaid; prepaid rent covers three equal months including this one; equipment cost 2,400, zero residual,24-month straight-line life, full month in use. No other transactions, tax, drawings or opening accumulated depreciation.

The idea

Balanced totals are a necessary computational check, not a sufficient correctness test.

Follow along

Post balanced adjustments — complete worked case

Balanced totals are a necessary computational check, not a sufficient correctness test.

Original fictional month-end unadjusted trial balance: debit cash 5,000; accounts receivable 1,000; prepaid rent 1,200; equipment 2,400; wages expense 600. Credit accounts payable 800; unearned revenue 1,200; owner capital 6,200; service revenue 2,000. Each side totals 10,200. Month-end evidence:400 of advance service was earned;300 service earned but unbilled;250 wages incurred/unpaid; prepaid rent covers three equal months including this one; equipment cost 2,400, zero residual,24-month straight-line life, full month in use. No other transactions, tax, drawings or opening accumulated depreciation.

Unadjusted original trial balance

Paste at A1.

AAccountBDebitCCredit
Cash50000
Receivable10000
Prepaid rent12000
Equipment24000
Wages expense6000
Payable0800
Unearned revenue01200
Capital06200
Service revenue02000

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  1. 1. 5.1 Post

    Retain the original trial balance and journal five adjustments (two revenue plus wages/rent/depreciation).

    You should see: Five individual balanced entries:400 earned advance,300 unbilled revenue,250 wages,400 rent,100 depreciation; journal totals 1,450 each side.

  2. 2. 5.2 Post

    Post each amount to its named ledger, maintaining debit/credit normal balances.

    You should see: Balances match the supplied adjusted list.

  3. 3. 5.3 Post

    List all nonzero adjusted balances and total each side.

    You should see: 10,850 debit and credit.

  4. 4. 5.4 Post

    Check source amounts/account/period independently; demonstrate that swapping one wrong debit account could still balance.

    You should see: Equal totals do not certify the accounting choice.

Now change one thing

Keep the original five adjustments except unbilled earned revenue is now 500 instead of 300. The original adjusted trial-balance totals were 10,850. Enter each new total.

Your work

What to finish

A posted adjustment journal and complete adjusted trial balance.

Common mistake

Watch for this

Adding all journal debits to the original trial-balance total without netting account decreases.

How can I tell I understand it?

Verify that your completed posted adjustment journal and complete adjusted trial balance meets the three lesson-specific checks and retains the supporting original records.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1What are the correctly posted adjusted trial-balance totals?
2Why does a trial balance still need source review when its totals match?
3Equipment stays 2,400 while accumulated depreciation is 100. How should they appear?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.

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Sources and further reading

Explore the references behind this lesson.

Open Stax: Adjusted trial balance
Source & access notes · checked 2026-10-01

Read posting before adjusted trial balance and computational check limits; balanced totals alone do not prove correct account/date choices.

Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.

Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.

Open Stax: Common adjusting entries
Source & access notes · checked 2026-10-01

Read accrued revenue/expense, deferral release and depreciation contra-asset entries.

Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.

Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.

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