1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-3 Preparing a Post-Closing Trial Balance

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Accounting Terms Post-Closing Trial Balance—A trial balance prepared AFTER the closing entries are posted (Post/After) Verifies that ALL Debits and Credits in the General Ledger are now EQUAL. Only PERMANENT (Balance Sheet) Accounts WITH BALANCES will appear since all TEMPORARY Accounts have been CLOSED! 2 LESSON 8-3

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 8-3 GENERAL LEDGER ACCOUNTS AFTER ADJUSTING AND CLOSING ENTRIES ARE POSTED page 213 Lines drawn in both the Balance Debit and Balance Credit columns assure reader that a balance has NOT been omitted!

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 8-3 8.Double rule 7.Record totals 6.Totals 5.Compare totals 4.Single rule 3.Account balances 2.Account titles 1.Heading POST-CLOSING TRIAL BALANCE 1 6 page 216 2 3 7 5 8 4

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 8-3 ACCOUNTING CYCLE FOR A SERVICE BUSINESS page 217 2 3 4 5 6 1 7 8 8.Prepare post-closing trial balance 7.Post adjusting and closing entries 6.Journalize adjusting and closing entries 5.Prepare financial statements 4.Prepare work sheet 3.Post 2.Journalize 1.Analyzes transactions

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 8-3 TERMS REVIEW post-closing trial balance accounting cycle page 219

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Audit Your Understanding 1.Why are lines drawn in both the Balance Debit and Balance Credit columns when an account has a ZERO balance? 2.Which accounts go on the Post- closing trial balance? 3.Why are temporary accounts omitted from a Post-closing trial balance? 7 LESSON 8-3