Question

create a Trial balance and Ledger

During its first month of operation, the Bethany's Bicycle Corporation, which specializes in bicycle repairs, completed the following transactions. Date March 1 March 1 March 1 March 3 March Transactions Transaction Description Began business by making a deposit in a company bank! account of $20,000, in exchange for 2,000 shares of $10 par value common stock. Paid the premium on a 1-year insurance policy. $2,400. Paid the current month's store rent expense, $1,900. Purchased repair equipment from Andrew Company, $5,800. Paid $1,000 down and the balance was placed on account. Payments will be $400.00 per month for 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due. Purchased repair supplies from Jackson Company on credit, $650. Paid telephone bill for March, $340. Cash bicycle repair revenue for the first third of March $1,650. Made payment to Jackson Company, $400. March 8 March 10 March 11 March 18 ... Project Instructions March Transactions Chart of Accounts 1 - Journal Entries

Answer 1

Answer:

Trial Balance
For the month Ended March 31
Account title	Debit	Credit
Cash	$16,810
Prepaid insurance	$2,400
Supplies	$650
Equipment	$5,800
Accounts payable		$5,050
Common stock		$22,450
Dividends	$1,000
Revenue		$1,650
Rent expense	$1,900
Telephone expense	$340
Utilities expense	$250
Total	$29,150	$29,150

Calculations:

Account title	Debit	Credit
Cash	20000-2400-1900-1000-340+1650-400+2450-250-1000
Prepaid insurance	$2,400
Supplies	$650
Equipment	$5,800
Accounts payable		4800+650-400
Common stock		20000+2450
Dividends	$1,000
Revenue		$1,650
Rent expense	$1,900
Telephone expense	$340
Utilities expense	$250