Question

Acquired $60,000 cash from the issue of common stock. Received an $8,200 cash advance for services to be provided in the future. Purchased $2,000 of supplies on account. Earned $36,000 of service revenue on account. Incurred $16,100 of operating expenses on account. Collected $28,500 cash from accounts receivable. Made a $15,100 payment on accounts payable. Paid a $2,000 cash dividend to the stockholders. Recognized $1,600 of supplies expense. Recorded $3,100 of accrued salaries expense. Recognized $3,100 of revenue for services provided to the customer in Event 2.
Required
a.
Record the events in T-accounts and determine the ending account balances.

b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance

Answer 1

Answer:

TRIAL BALANCE:

                   Debit Credit

Cash            79600

AR                       7500

Supplies                  400

slaries expense 3100

op- expense        16100

supplies expense 1600

dividends        2000

Account Payable               3000

saalaries expense                3100

Unearned Revenue               5100

Common Stock             60000

Service revenue              39100

                       110300    110300

Explanation:

We have to record eahc time an accoutn is used and once we got all transactions we determiante the balance

Cash

Debit Credit

60000

8200

28500

        15100

        2000

96700 17100

79600

AR

Debit Credit

36000

       28500

7500

Supplies

Debit Credit

2000

        1600

 400

salaries expense op- expense supplies expense

Debit Credit    Debit Credit Debit Credit

3100        16100          1600

Account Payable

Debit Credit

       2000

       16100

15100

15100  18100    

        3000

Salaries Payable

Debit Credit

         3100

Unearned Revenue

Debit Credit

        8200

3100              

        5100

Common Stock

Debit Credit

       60000

Service revenue

Debit         Credit

      36000

         3100  

        39100

Then we construct the trial balance which all these account balance.