Answer:
Wainwright Corporation
1. T-accounts:
Cash
Accounts Titles Debit Credit
Common stock $480,000
Equipment $19,000
Rent Expense 6,800
Prepaid insurance 7,800
Accounts payable 88,000
Accounts receivable 73,000
Balance $431,400
Common Stock
Accounts Titles Debit Credit
Cash $480,000
Equipment
Accounts Titles Debit Credit
Cash $19,000
Notes payable 39,000
Balance $58,000
Notes Payable
Accounts Titles Debit Credit
Equipment $39,000
Inventory
Accounts Titles Debit Credit
Accounts payable $114,000
Cost of goods sold $88,000
Balance 26,000
Accounts Payable
Accounts Titles Debit Credit
Inventory $114,000
Cash $88,000
Balance 26,000
Cost of Goods Sold
Accounts Titles Debit Credit
Inventory $88,000
Sales Revenue
Accounts Titles Debit Credit
Accounts receivable $210,000
Accounts Receivable
Accounts Titles Debit Credit
Sales revenue $210,000
Cash $73,000
Balance 137,000
Rent Expense
Accounts Titles Debit Credit
Cash $6,800
Prepaid Insurance
Accounts Titles Debit Credit
Cash $7,800
Depreciation Expense
Accounts Titles Debit Credit
Accumulated depreciation $2,800
Accumulated Depreciation - Equipment
Accounts Titles Debit Credit
Depreciation Expense $2,800
2. Trial Balance
As of April 30, 2021:
Accounts Titles Debit Credit
Cash $431,400
Common stock $480,000
Equipment 58,000
Notes payable 39,000
Inventory 26,000
Accounts payable 26,000
Cost of goods sold 88,000
Sales revenue 210,000
Accounts receivable 137,000
Rent expense 6,800
Prepaid insurance 7,800
Depreciation expense 2,800
Accumulated depreciation 2,800
Totals $757,800 $757,800
Explanation:
To prepare T-accounts, just follow a simple step by posting each transaction to two accounts or more as the case may. After all transactions have been posted, balance the accounts by identifying the differences between the two sides of each account. Use the balances (where only one transaction is recorded in an account, that becomes the balance) to extract the Trial Balance.
