Third, make adjusting entries, journalize and post them in ledger accounts.
Making end-of-period adjusting entries, journalizing and posting them in ledger accounts.
The unadjusted trial balance must be adjusted to in corporate the effects of all of the adjusting entries.
After all adjusting entries have been journalized and posted, another trial balances is prepared from the ledger accounts.
Making adjusting entries is very challenging, so it is usually done by the controller or an excellent accountant.
Over the 40-year life of the bond issue, adjusting entries are made to gradually transfer the balance in the Discount account into interest expense.
The adjusting entries can be recorded in the journal when they are entered on the work sheet, but it is not necessary to jour-nalize them at the same time.
After the adjusting entries have been posted an adjusted trial balance can be made to test the equality of total debit and total credit balance of all ledger accounts.
