1. The Accounting Cycle: Step 9
Professor Eric Carstensen
MiraCosta College

2. What is the Post-Closing Trial Balance?
The Unadjusted Trial Balance is prepared in order to proceed to the adjusting process (Step 5).
The Adjusted Trial Balance is prepared in order to proceed to the preparation of the financial Statements (Step 7).
The Post-Closing Trial Balance is prepared so that we can start collecting information in the next fiscal period (back to Step 1). It shows that the temporary accounts have zero balances and that the permanent accounts are in balance.

3. Post-Closing Trial Balance
Account
Debit
Credit
cash
38,500
A/R
3,900
prepaid insurance
4,400
supplies
700
equipment
14,200
accumulated deprec - equip
100
A/P
5,600
wages payable
2,000
interest payable 50
unearned revenue
5,700
notes payable
10,000
common stock
35,000
retained earnings
3,250
dividends -
revenue
rent expense
wages expense
insurance expense
supplies expense
depreciation expense - equip
interest expense
total
61,700

4. The Accounting Cycle - Review
Step 1: Analyze Transactions
Step 2: Prepare Journal Entries
Step 3: Post Entries to Ledgers
Step 4: Prepare Unadjusted Trial Balance
Step 5: Prepare and Post Adjusting Entries
Step 6: Prepare Adjusted Trial Balance
Step 7: Prepare Financial Statements
Step 8: Prepare and Post Closing Entries
Step 9: Prepare Post-Closing Trial Balance

5. We Completed the Accounting Cycle – Now What?
In addition to the Accounting Cycle, I have also prepared other presentations to assist you with your studies in Financial Accounting.
We’ve used a service business in these examples, so there are two presentations on Merchandising and one covering Inventory.
There are two presentations covering Financial Analysis.
Other topics covered include internal control, cash control, fixed assets and notes payable.