Question

The following transactions occurred during the month of December 2010 12/1 We Mess U You, Inc. rents is salon space as part of a local mal We Mess U Up prepays its rent 12 months in advance. Annual rental payment is made on December 1 of each year and expires on December 1 of the following year. The rental payment is made on this date for the 12 months ending December 1, 2011. The payment is 12/2 Cash revenues received for various services were: $19.200 Men's haircuts Women's haircuts Perms Senior Citizens 3.200 $ 4,800 980 680 12/4 Senior Citizens Receivable represents visits by We Mess U Up to area Senior Citizen Centers to give haircuts to residents of the senior center. After giving haircuts ona given day, We Mess U Up bills the senior center for the number of haircuts given. Today haircuts at Johnson Senior Care were given totaling accordingly. Purchased a especially bad haircuts. The term of the policy is December 1, December 1, 2,500 and Johnson was billed 12/4 year insurance policy, protecting We Mess U Up from lawsuits for 2010 to 2012 The two year premium is: $ 9,600 12/5 Purchased various haircut supplies, on account,: $ 1,700 12/7 Purchased an automobile for employees to use when driving to give off-site haircuts, homes. such as to area senior citizen Record as Hair Equipment. Cost of the auto is: $ $21.000 8% 10,000 was paid in cash and the remainder is financed with a three-year, note payable, the principal amount of the note will be paid in full on December 1, 2013. Interest is paid annually each December 1, beginning December 1, 2011 6,500 for a series of radio advertisements that 12/10 Received bill and paid: were aired from December 1-10. Cash revenues received for various services were: Men's haircuts Women's haircuts Perms Senior Citizens 12/12 8,800 $ 12,600 $ 5,900 $ 3,400 on account $ Received payments from senior citizen centers, 12/14 Paid wages to employees, who are paid per haircut given. This period's biweekly wage totaled: 12/17 9,270 $ 670 to janitorial service for cleaning the office. $ Paid 12/19 $ 3,900 Received bill for advertisements shown in local newspapers, totaling: The bill will be paid in a couple of weeks. 12/20 1,250 $ 12/20 Purchased supplies, on account 7,160 $ Paid various accounts payable bills, 12/23 Paid various auto expenses for driving to senior citizen centers, and other travel related expenses, 12/24 1,175 record in maintenance expense $ Performed haircuts at the Community Senior Citizen Center, and billed the center, $ 12/28 4,600 Cash haircuts and perms for the last half of the month were: 12/31 $ 4,200 $ 5,800 $ Men's haircuts Women's haircuts 600 Perms Senior Citizens $ 800 $ Paid more bills on account 12/31 $ 1,000 Paid the interest on the $10,000 note payable that is already on the books. 12/31
I just need help getting my unadjusted trial balance

Answer 1

Solution:-

Trail Balance of We Mess U Up Inc for the month of December 2010 has been prepared based on the chronology of events as detailed out in the question and the final Trail Balance as on 31.12.2010 has been tallied. Thanks.
CASH-111 REF ACCOUNT DATE 30/11 01/12 02/12 02/12 02/12 02/12 04/12 07/12 10/12 12/12 |12/12 12/12 |14/12 17/12 19/12 23/12 24/12 12/12 (12/12 12/12 31/12 31/12 RENT PAID FOR 01.12.2010 TO 01.12.2011 Men's Haircuts Women's Haircuts Perms Senior Citizen Insurance Paid for automobile (hair equipments) Advertisement Expenses Men's Haircuts Women's Haircuts Perms Received from Senior Citizens Wages to Employees paid paid for Janitorial Service Paid for accounts payable Paid for Auto Expenses Men's Haircuts Women's Haircuts Perms Paid for accounts payable Interest paid DEBIT CREDIT BALANCE 36,667 192001 1 7,467 3200 20,667 4800 25,467 980 26,447 680 27,127 9600 17,527 100001 7,527 6500 1,027 8800 9,827 12600 22,427 5900 28,327 3400 31,727 92701 22,457 670 21,787 14,627 1175 13,452 4200 17,652 5800 23,452 600 24,052 23,252 1000 22,252 7160 8001 DATE 30/11 104/12 14/12 28/12 SENIOR CENTRE RECEIVABLE - 112 ACCOUNT REF DEBIT CREDIT BALANCE 3,400 Billing at Senior Citizen Centre 2500 5,900 Cash Received 34001 2,500 Billing at Senior Citizen Centre 4600 7,100 SUPPLIES INVENTORY - 113 REF DATE ACCOUNT DEBIT CREDIT 30/11 BALANCE 8,400 10,100 11,350 05/12 (20/12 Supplies purchased on account Supplies purchased on account 1700 1250 PREPAID RENT - 114 REF ACCOUNT DEBIT CREDIT BALANCE DATE 30/11 01/12 Transferred (01.01.2011 to 01.12.2011) 17600 17,600 Page 1 of 5

PREPAID INSURANCE - 115 REF ACCOUNT DEBIT CREDIT BALANCE DATE 30/11 New Policy from 01.12.2010 to 01.12.2012 Prepaid rent for period from 01.11.2011 to 01.12.2012 04/12 9,200 HAIR EQUIPEMENT - 131 REF ACCOUNT DEBIT CREDIT BALANCE DATE 30/11 07/12 Automobile purchased 54,836 75,836 ACCUMULATED DEPRECIATION, HAIR EQUIPEMENT - 132 DEBIT CREDIT ACCOUNT DATE 30/11 BALANCE 4,100 ACCOUNT DATE 30/11 COMPUTER AND OTHER OFFICE EQUIPMENT - 135 REF DEBIT CREDIT BALANCE 30,739 DATE 30/11 ACCUMULATED DEPRECIATION, COMPUTER AND OTHER OFFICE EQUIPMENT - 136 ACCOUNT REF DEBIT CREDIT BALANCE 12,830 ACCOUNTS PAYABLE - 211 REF ACCOUNT DATE 30/11 05/12 120/12 20/12 23/12 31/12 Hair cut supplies received Bill for Advertisement shown in local newspapers Supplies Purchased Cash Paid Cash Paid DEBIT CREDIT BALANCE 1,500 1700 3,200 3900 7,100 1250) 8,350 7160 1,190 1 390 800 WAGES PAYABLE - 212 REF AYABLE R22 DEBIT CREDIT ACCOUNT DEBIT CREDIT BALANCE DATE 30/11 BALANCE INTEREST PAYABLE - 213 REF ACCOUNT DEBIT CREDIT BALANCE DATE 30/11 |RE | DEBIT | CREDIT BALANCE | | Interest expense on 8%, 3 year note of 11000 (11000/8%/12) 1000 | 31/12 UNEARNENED SERVICE REVENUE - 214 REF DEBIT ACCOUNT CREDIT DATE 30/11 BALANCE 1,700 Page 2 of 5

LONG TERM NOTES PAYABLE - 220 REF DEBIT ACCOUNT DATE 30/11 07/12 CREDIT BALANCE 10,000 11000 21,000 8%, 3 year note for automobile purchased COMMON STOCK - 311 ACCOUNT DEBIT CREDIT DATE 30/11 BALANCE 40,000 RETAINED EARNINGS - 312 REF ACCOUNT DEBIT CREDIT DATE 30/11 BALANCE 21,182 MEN'S HAIRCUT REVENUE - 411 DEBIT ACCOUNT REF DATE 30/11 02/12 12/12 31/12 Cash Cash Cash CREDIT BALANCE 81,160 3200 84,360 8800 93,160 4200 97,360 WOMEN'S HAIRCUT REVENUE - 412 REF DEBIT DATE 30/11 02/12 12/12 31/12 ACCOUNT 1 Cash Cash Cash 1 CREDIT BALANCE 1,49,700 4800 1,54,500 12600 1,67,100 58001 ,72,900 PERM REVENUE - 413 REF ACCOUNT DEBIT DATE 30/11 02/12 12/12 31/12 Cash Cash Cash CREDIT BALANCE 64,000 980 64,980 5900 70,880 600 71,480 SENIOR CITIZEN HAIRCUT REVENUE - 414 REF DEBIT ACCOUNT DATE 30/11 02/12 04/12 (28/12 Cash Billing at Senior Citizen Centre Billing at Senior Citizen Centre CREDIT BALANCE 16,783 680 17,463 2500 19,963 4600 24,563 WAGES EXPENSES - 511 REF ACCOUNT DEBIT CREDIT DATE 30/11 17/12 BALANCE 1,95,000 2,04,270 Cash paid for bi-weekly haircuts 9270) Page 3 of 5

RENT EXPENSE. 512 ACCOUNT DEBIT CREDIT HALANCE DATE 30/11 01/12 11,00 100 19200 To Cash (Rent paid 01.12.10 10 01.12.11) By Prepaid Rent (Rent of 01.01.11 10 01.12.11) (Rent transferred to prepaid rent) 01/12 17600 20,500 INSURANCE EXPENSES.513 REF ACCOUNT DEDIT CREDIT BALANCE DATE 30/11 9600 9,600 Cash Paid for Insurance Policy from 01.12.2010 to 01.12.2012 Transferred to Prepaid Insurance (9600/24*23) 04/12 9200 400 SUPPLIES EXPENSE - 514 ACCOUNT REF CREDIT DATE 30/11 DALANCE 20,250 UTILITIES EXPENSES-515 ACCOUNT REF DEDIT CREDIT DATE 30/11 DALANCE 18,200 ADVERTISING EXPENSES - 516 REF ACCOUNT DATE 30/11 DEDIT CREDIT DALANCE 9,750 10/12 20/12 Cash paid for advertising expense for advertising Jaired from 01-10 Dec Bill for advertisement in local newspapers 6500 3900 16,250 20,150 MAINTENANCE EXPENSES - 517 REF ACCOUNT DEBIT CREDIT DATE 30/11 19/12 24/12 BALANCE 6,280 6,950 8,125 Janitorial servcles Paid for Auto Expenses 670 1175 DEPRECIATION EXPENSE, HAIR EQUIPMENT - 518 EF DEOIT ACCOUNT CREDIT DALANCE DATE 30/11 DEPRECIATION EXPENSE, COMP AND OTHER OFFICE EQUIPMENT - 519 ACCOUNT REF DEDIT CREDIT BALANCE DATE 30/11 Page 4 of 5

INTEREST EXPENSE - 520 REF DEBIT CREDIT DATE ACCOUNT 011 11. Pakt interest on notes payable 11.1..10 11. It '8412) BALANCE 533 1,533 1000 1,606 INCOME SUMMARY - 999 ACCOUNT REF _DEDIT DEBIT DATE 2011 (CREDIT | BALANCE CREDIT CREDIT BALANCE Page 5 of 5

ACCOUNT UNADJUSTED TRIAL BALANCE Debit Credit 22,252 7,100 11,350 17,600 9,200 75,836 30,739 12,830 390 Cash-111 Senior Centre Receivable - 112 Supplies Inventory - 113 Prepaid Rent - 114 Prepaid Insurance - 115 Hair Equipement - 131 Accumulated Depreciation, Hair Equipement - 132 Computer And Other Office Equipment - 135 Accumulated Depreciation, Computer And Other Office Equipment - 136 Accounts Payable - 211 Wages Payable - 212 Interest Payable. 213 Unearnened Service Revenue - 214 Long Term Notes Payable - 220 Common Stock - 311 Retained Earnings - 312 Men's Haircut Revenue - 411 Women's Haircut Revenue - 412 Perm Revenue -413 Senior Citizen Haircut Revenue - 414 Wages Expenses - 511 Rent Expense - 512 Insurance Expenses - 513 Supplies Expense - 514 Utilities Expenses-515 Advertising Expenses - 516 Maintenance Expenses - 517 Depreciation Expense, Hair Equipment - 518 Depreciation Expense, Comp And Other Office Equipment - 519 Interest Expense - 520 Income Summary - 999 73 1,700 21,000 40,000 21,182 97,360 1,72,900 71,480 24,563 2,04,270 20,500 400 20,250 18,200 20,150 8,125 1,606 4,67,578 4,67,578 DIFFERENCE