Question

1. Questions: Prepare Adjusted Tri-balance for the following Items Amount 2152 3000 1200 Salaries Payable Account Receivable Accumulated Depreciation Equipment Supplies Expenses Equipment Withdrawal Dividends Cash Account Payable pre-paid Insurance supplies Tax payable Rental Revenue Rent Expenses Revenue Capital 1500 990 1650 540 700 1650 900 1200 2570 583 9102 I 1927 8520

Answer 1

Trial balance is a statement that lists down list of accounts along with their respective balance. It is used to check mathematical accuracy of the transactions recorded and balances reported for each ledger. Accounts shall be listed according to their liquidity position on trial balance. It starts with assets, then liabilities, then stockholders' equity, then revenues and then expenses. Total of the Debit accounts shall match with total of Credit accounts listed on trial balance. If total of debit side doesn't equal to total of credit side of the trial balance, the difference shall be parked in a temporary account named "Suspense" for a time being. Later, reason for such difference shall be analyzed and proper rectification entries shall be recorded in respective ledger accounts after analyzing all transactions recorded carefully.

Trial Balance Account Titles Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Tax Payable Capital Withdrawal Rental Revenue Rent Expense Supplies Expense Suspense Totals Debit Credit 700 3000 900 1200 990 1200 1650 2152 2570 8520 2190 2410 9102 1500 1080 1958219582 Asset and so it is listed on debit side Asset and so it is listed on debit side Asset and so it is listed on debit side Asset and so it is listed on debit side Asset and so it is listed on debit side Contra Asset and so it is listed on credit side Liabilitiy and so it is listed on credit side Liabilitiy and so it is listed on credit side Liabilitiy and so it is listed on credit side Equity and so it is listed on credit side Contra Equity and so it is listed on debit side Revenue and so it is listed on credit side Expense and so it is listed on debit side Expense and so it is listed on debit side --> Balancing figure; To make Debit = Credit. NOTE: For a firm that has balance in capital account, withdrawal and dividends are the same and so both are combined and reported as one account namely "Withdrawal" (= 1650 + 540 = 2190). Similarly, Revenue and Rental Revenue are one and the same and so they are also combined and reported as "Rental Revenue" (= 883 + 1527 = 2410)