# Example of Journal Entries on T - Account and Trial Balance

Back to: Accounting & Taxation

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Hey everybody, welcome back to part two of chapter

two example. And in this video we are going to

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be taking what we did in the last video with the

journal entries and T tables, and more specifically,

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probably with the T tables and converting thatÂ

into what we call an unadjusted trial balance.Â Â

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As we will talk about in future chapters, whatÂ

the accounting cycle is. There's a few spotsÂ Â

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in there where we have to do these things isÂ

called a trial balance. And the travel one isÂ Â

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just kind of a check mechanism to make sureÂ

that our debits and our credits are equal.Â Â

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Remember that's one of the big things that we haveÂ

to have when we're doing double entry accounting.Â Â

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I'm going to show you how to do that today.Â

What we're going to do is we look at all ofÂ Â

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our key table specifically and we're going toÂ

find our account balances for those two tables.Â Â

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Some of these are going to be really easy becauseÂ

there's not much going on with them. Some of theÂ Â

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are going to be a little bit more challenging,Â

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you want to do to find your account balance isÂ Â

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to add up all the debits and then out of all theÂ

credits and then subtract the two numbers. AndÂ Â

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whatever the difference is, that's going to beÂ

your account balance. And it should go on thisÂ Â

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side. That is the plus side, which is alsoÂ

the side that should have the higher amount.Â Â

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So if you were to do this for cash and by theÂ

way, you want to pause this, stop it and tryÂ Â

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they'll let you know what you don't knowÂ Â

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if you need help, whether or not. But whatÂ

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that, you should get a total of 200 and 9,000.Â Â

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If you do that, you should get a total of 180,500.Â Â

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Then you subtract the two and that will give youÂ

a total difference of 28 5 and it go again on theÂ Â

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because this is a debited account. This isÂ

where my debit goes. I'm going to put 28Â Â

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5. Alright, Let's go to the next one. I want toÂ

do a I'm going to do these as a specific orderÂ Â

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just because this is how they naturally would go.Â

A I'm going to take my 1 65. Subtract out 1 41.Â Â

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That's going to give me a difference of 24,000.Â

Again, that's going to go on the debit side.Â Â

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I'm going to put that down. Alright. Next I'mÂ

going to do supplies. Supplies is pretty easy.Â Â

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There's only two things I haveÂ

to add up, which is 400 and 1,500Â Â

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that's going to give me a total ofÂ

1,900. Again, that's on the debit side.Â Â

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I'm also going to put prepaid prepaid Super easy.Â

There's only one thing I have to worry about,Â Â

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and that's 24,000. Someone put that down. And thenÂ

the same thing with Land. Land is going to have aÂ Â

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debited balance of 100,000. Right now. I'm goingÂ

to move on to my liabilities accounts payable.Â Â

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I'm going to subtract the two numbers 44 minusÂ

the 30. That's going to give me an accountsÂ Â

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payable balance of a credit of 14,000 memberÂ

liabilities. The credit side is the normal side.Â Â

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So 14,000 and then unearned revenue is going toÂ

be 18,000 because nothing's changed from that.Â Â

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Now we go into the equity account. So we haveÂ

common stock, common stock. We just add upÂ Â

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those two numbers that's going to give us 40,000Â

to the credit. Retain earnings is going to beÂ Â

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10 4. Again, we haven't do anything for thatÂ

one. So 10,400 dividends dividends is going toÂ Â

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be 5,000 towards the debit. Then we haveÂ

consulting revenue of 165 on the credit,Â Â

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then salaries expense 20,000 on the debit.Â Â

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And then finally we have miscellaneous expense ofÂ

44,000 on the debit. Now you're probably wonderingÂ Â

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why did I go in this order? Right on. I justÂ

go in the order in which I have them on the TÂ Â

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table. These are the actual orders ofÂ

the codification numbers that we have.Â Â

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You don't have to use this. It can kind of goÂ

in any order because they all add up the same.Â Â

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But once we get to this point, I'm going to takeÂ

everything in the debit column and add it up.Â Â

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And so if I do that, that's going to give me 200Â

and 47,400. And then I'm really hoping a lot thatÂ Â

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my credit column is going to add up to be theÂ

same. So when I add up my credit column and thenÂ Â

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it is actually the same 200 and 47,400, we are onÂ

the right path. There's nothing that we have toÂ Â

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go back and review necessarily based on this. SoÂ

again, this is just kind of a check stop to makeÂ Â

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sure that we're doing things that we're supposedÂ

to be doing. Everything is adding up the way itÂ Â

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should be. And then that way we can move on to theÂ

next step of the accounting cycle. There you haveÂ Â

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it. That is how you do an unadjusted TRA bonds.Â

Now would not throw away this problem quite yet,Â Â

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because in chapter three, we're actually going toÂ

finish the accounting cycle using this problem. SoÂ Â

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this is still going to be very important for youÂ

to have the T tables and everything, because we'reÂ Â

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just going to continue adding on to it. But forÂ

now, I hope you enjoyed this. You all take care.