How to Prepare a Trial Balance for Brandt Bed and Breakfast

How do you prepare a trial balance for Brandt Bed and Breakfast for December 31, 2020?

What is required to create a trial balance?

Answer:

To prepare a trial balance for Brandt Bed and Breakfast for December 31, 2020, you need to gather all the account balances for that specific date. This includes the balances of all assets, liabilities, equity, revenue, and expenses as of December 31, 2020.

Creating a trial balance involves compiling a list of all accounts and their respective balances at a particular date, in this case, December 31, 2020. For each account, you will separate the debit and credit balances into two columns. The final step is to total the debit balances and credit balances to ensure they are equal, indicating that the ledger is in balance.

Without the actual figures of the account balances, it is impossible to prepare an accurate trial balance. The trial balance serves as a crucial step in the accounting process to verify that the total debits equal the total credits before moving onto the financial statements.