Finance & AccountingIntermediate 2 to 3 hours

Prepare a Balance Sheet from Trial Balance

Convert a trial balance into a properly classified balance sheet.

The Scenario

The bookkeeper has produced a trial balance for year-end. The auditors need a properly classified balance sheet separating current vs non-current assets and liabilities. The bookkeeper does not know how to do the classification.

The Brief

Invent a 20-line trial balance for a small manufacturing company. Then convert it into a classified balance sheet with proper groupings.

Deliverables

  • A 20-line trial balance with debits and credits that balance
  • A classified balance sheet: Current Assets, Non-Current Assets, Current Liabilities, Non-Current Liabilities, Equity
  • Three journal entries for common year-end adjustments (depreciation, accruals, prepayments) and their impact on the balance sheet

Submission Guidance

The trial balance must balance. The balance sheet must balance. If they do not, you have made an error. Check your work.

Submit Your Work

Your submission is graded against the rubric on the right. If you pass, you get a public Badge URL you can share on LinkedIn. There is no draft save, so work offline first and paste your finished response here.

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