The differences between an unadjusted trial balance and an adjusted trial balance are the amounts recorded as part of the adjusting entries.

Adjusting entries include the accrual of revenues that were earned but were not yet recorded, and the accrual of expenses that were incurred but were not yet recorded. Accrued expenses and the related liabilities often involve wages, utilities, repairs and maintenance, commissions, interest, and more.

Adjusting entries also include depreciation and the deferral of or an adjustment of prepayments including prepaid insurance, unearned revenues, customer deposits, and more.

To learn more, see the Related Topics listed below: