Question

Requirement 2. Prepare an unadjusted trial balance. ​(Exclude any accounts with a zero balance from the trial​ balance.)

Review the T-accounts you prepared in Requirement 1.

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Wendson's Quality Automotive
Unadjusted Trial Balance
December 31, 2018
		Balance
	Account Title	Debit	Credit
	Cash	49,420
	Wendson, Capital
	Equipment
	Prepaid Insurance
	Land
	Office Supplies
	Notes Payable
	Advertising Expense
	Utilities Expense
	Total

WendsonWendson

contributed

$ 52 comma 000$52,000

cash to the business in exchange for capital.

1

Purchased

$ 15 comma 000$15,000

of equipment paying cash.

1

Paid

$ 4 comma 500$4,500

for a

tenten​-month

insurance policy starting on

DecemberDecember

1.

9

Paid

$ 24 comma 000$24,000

cash to purchase land to be used in operations.

10

Purchased office supplies on​ account,

$ 1 comma 700$1,700.

19

Borrowed

$ 35 comma 000$35,000

from the bank for business use.

WendsonWendson

signed a note payable to the bank in the name of the business. The note is due in five years.

22

Paid

$ 2 comma 000$2,000

for advertising expenses.

26

Paid

$ 1 comma 400$1,400

on account.

28

The business received a bill for utilities to be paid in

JanuaryJanuary​,

$ 260$260.

3131

Revenues earned during the month included

$ 17 comma 000$17,000

cash and

$ 3 comma 700$3,700

on account.

3131

Paid​ employees' salaries

$ 3 comma 200$3,200

and building rent

$ 1 comma 700$1,700.

Record as a compound entry.

3131

The business received

$ 1 comma 220$1,220

for auto screening services to be performed next month.

3131

WendsonWendson

withdrew cash of

$ 4 comma 000$4,000.

Answer 1

Wendson's Quality Automotive Journal entries Date Account 1-Dec Cash Wendson, Capital Credit Debit $ 52,000 $ 52,000 $ 15,000 1-Dec Equipment Cash $ 15,000 $ 4,500 1-Dec Prepaid Insurance Cash $ 4,500 $ 24,000 9-Dec Land Cash $ 24,000 $ 1,700 10-Dec Office Supplies Accounts Payable $ 1,700 $ 35,000 19-Dec Cash Notes Payable $ 35,000 $ 2,000 22-Dec Advertising expense Cash $ 2,000 $ 1,400 26-Dec Accounts Payable Cash $ 1,400 $ 260 28-Dec Utilities expense Utilities Payable $ 260 31-Dec Cash Accounts Receivable Service Revenue $ 17,000 $ 3,700 $ 20,700 31-Dec Salaries expense Rent expense Cash $ $ 3,200 1,700 $ 4,900 $ 1,220 31-Dec Cash Unearned Revenue $ 1,220 $ 4,000 31-Dec Wendson, Withdrawals Cash $ 4,000

Credit Credit Date Debit Date Credit Accounts Receivable 31-Dec $ 3,700 Date Debit Date Office Supplies 10-Dec $ 1,700 Date Debit Date Prepaid Insurance 1-Dec $ 4,500 Wendson's Quality Automotive T Accounts Date Debit Date Credit Cash 1-Dec $ 52,000 1-Dec $ 15,000 19-Dec $ 35,000 1-Dec $ 4,500 31-Dec $ 17,000 9-Dec $ 24,000 31-Dec $ 1,220 22-Dec $ 2,000 26-Dec $ 1,400 31-Dec $ 4,900 31-Dec $ 4,000 Bal. $ 1,700 Bal. $ 4,500 Bal. $ 49,420 Land 9-Dec $ 24,000 Bal. $ 3,700 Equipment 1-Dec $ 15,000 Bal. $ 24,000 Accounts Payable 26-Dec $ 1,400 10-Dec $ 1,700 $ 15,000 Utilties Payable 28-Dec $ Unearned Revenue 31-Dec $ 1,220 Notes Payable 19-Dec $ 35,000 260 260 Bal. $ 1,220 Bal. $ 35,000 Bal. $ 300 Wendson, Capital 1-Dec $ 52,000 Bal. $ Wendson, Withdrawals 31-Dec $ 4,000 Bal. $ 52,000 Service revenue 31-Dec $ 20,700 Bal. $ 4,000 Salary expense 31-Dec $ 3,200 Rent expense 31-Dec $ 1,700 Utilites expense 28-Dec $ 260 $ 20,700 Bal. $ 3,200 Bal. $ 1,700 Bal. $ 260 Bal. Advertising expense 22-Dec $ 2,000 Bal. $ 2,000

Wendson's Quality Automotive Account Names Cash Accounts Receivable Office Supplies Prepaid Insurance Land Equipment Accounts Payable Utilities Payable Unearned Revenue Notes Payable Wendson, Capital Wendson, Withdrawals Service Revenue Salaries expense Rent expense Utilities expense Advertising expense Totals Unadjusted TB Debit Credit 49,420 3,700 1,700 4,500 24,000 15,000 300 260 1,220 35,000 52,000 4,000 20,700 3,200 1,700 260 2,000 109,480 109,480