Question

UHOW Me How Calculator Trial Balance Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 2012, its first month of operations, are indicated in the following T accounts: Cash Equipment (3) 15,000 Dividends (9) 1,500 (1) 40,000 (2) 4,000 (7) 13,100|(3) 5,000 |(4) 6,175 (6) 6,000 (9) 1,500 Accounts Receivable Accounts Payable Service Revenue (5) 20,500 (7) 13,100 (6) 6,000|(3) 10,000 (5) 20,500 Supplies Common Stock (2) 4,000 (8) 2,200 (1) 40,000 Operating Expenses (4) 6,175 (8) 2,200 a. Prepare an unadjusted trial balance. List all the accounts in the order of Assets, Liabilities, Stockholders' equity, Revenues, and expenses. Place the

Answer 1

1. Rocky Mountain Tours Co. Unadjusted Trail Balance June.30, 20Y2

	Debit	Credit
Cash	$30,425
Accounts Receivable	$7,400
Supplies	$1,800
Equipment	$15,000
Accounts Payable		$4,000
Common Stock		$40,000
Dividends	$1,500
Service Revenue		$20,500
Operating Expenses	$8,375
Total	$64,500	$64,500

Explanation;  

Cash

(1)	$40,000	(2)	$4,000
(7)	$13,100	(3)	$5,000
		(4)	$6,175
		(6)	$6,000
		(9)	$1,500
End.Bal	$30,425

Equipment

(3)	$15,000
End.Bal	$15,000

Dividends

(9)	$1,500
Ending.Bal	$1,500

Accounts Receivable

(5)	$20,500	(7)	$13,100
End.Bal	$7,400

Accounts Payable

(6)	$6,000	(3)	$10,000
End.Bal			$4,000

Service Revenue

		(5)	$20,500
End.Bal			$20,500

Supplies

(2)	$4,000	(8)	$2,200
End.Bal	$1,800

Common Stock

		(1)	$40,000
End.Bal			$40,000

Operating Expenses

(4)	$6,175
(8)	$2,200
End.Bal	$8,375

2. Ney income = Service Revenue - Operating Expenses

= $20,500 -$8,375 = $12,125