The trial balance data for Nybrostrand Company with additional information are used to prepare the list of adjusting and closing entries and to compose income statement for the period ending 31 December 2012 in accordance with US GAAP.
Unadjusted trial balance: past years’ retained earnings
Before composing the income statement, other potential sources of errors in the bookkeeping process should be sought for and corrected. The unbalanced trial balance means there is an error in some of the accounts (“Balancing an Unbalanced Trial Balance”, 2010). The most probable source of error is supposed to be retained earnings account which balance is not included in Continue reading...