Question

Trial Balance Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Dividends Equipment (3) 15,000 (9) 1,500 Cash (1) 40,000 (2) 4,000 (7) 13,100(3) 5,000 (4) 6,175 (6) 6,000 (9) 1,500 Service Revenue Accounts Receivable (5) 20,500 (7) 13,100 Accounts Payable (6) 6,000 (3) 10,000 (5) 20,500 Common Stock Supplies (2) 4,000 (8) 2,200 (1) 40,000 Operating Expenses (4) 6,175 (8) 2,200

Answer 1

	Cash
(1)	$ 40,300	(2)	$ 4,000
(7)	$ 13,100	(3)	$ 5,000
		(4)	$ 6,175
		(6)	$ 6,000
		(9)	$ 1,500
Bal.	$ 30,425

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

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

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

	Accounts Payable
(6)	$ 6,000	(3)	$ 10,000
		Bal.	$ 4,000

	Common Stock
		(1)	$ 40,000
		Bal.	$ 40,000

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

	Service Revenue
		(5)	$ 20,500
		Bal.	$ 20,500

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

(a)
Rocky Mountain Tours Co. Unadjusted Trial Balance June 30, 20Y2
Account Titles	Debit Balances	Credit Balances
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

(b)
Particulars	Amount (in $ )
Service Revenue	$ 20,500
Less: Operating Expenses	($ 8,375 )
Net Income	$ 12,125