Question

Transaction Summary

1. Sold on account $1500 of consulting services
2. Purchased supplies on account from a vendor for $800
3. Bought equipment for $10,000 using a note payable
4. Sold for cash $5000 of consulting services
5. Paid rent expense of $500
6. Paid salaries expense of $400
7. Received cash from customer in (a.) of $500
8. Paid to vendor in (b.) the amount of $400
9. One of our best customers paid us a retainer in cash in the amount for $2000 for future services to be performed later

Beginning of the month trial balance

Cash                            $4,400

A/R                              $10,800

Supplies                       $7,200

PPD Insurance             $3,000

Unearned Income                                             $1,200

A/P                                                                  $1,600

Common Stock                                                $2,000

Additional Paid In Capital                                 $7,600

Retained Earnings                                            $13,000

Totals                           $25,400                        $25,400

Prepare an unadjusted trial balance after doing all transactions in the T accounts.

Answer 1

NO Debit ($) Credit ($) 1500 a Account Tittle Account Receivable To Consulting Service (Consulting Service on account) 1500 |ь 800 Supplies To Account Payable (Supplies on account) 800 С 10000 Equipment To Note payable (Equipment purchased) 10000 d 5000 Cash To Consulting Service (Consulting Service on account) 5000 e 500 Rent Expense To Cash (Rent paid) 5001 f 400 Salaries Expense To Cash (Salary paid) 400 8 500 Cash To Account receivable (Cash received from Debtors ) 500

h 400 Account Payable To cash (Creditors paid) 400 i Cash Unearned Revenue (Advance from client) 2000 2000

Common stock Cash 4400 e 500 Beg. Bal Account Receivable 10800 1500 Beg. Bal d 500 Beg. Bal 9600 5000 400 End Bal. 9600 f h 400 End Bal. 11800 h End Bal. 500 2000 10600 Supplies 7200 Unearned Income Beg. Bal h End Bal. 800 Beg. Bal b End Bal. 1200 2000 3200 Rent Expense 500 500 8000 End Bal. h 1600 Account Payable 400 Beg. Bal b End Bal. Prepaid insurance 3000 3000 Retained Earning Beg. Bal End Bal. 13000 13000 Beg. Bal End Bal. 8001 2000 Consulting Service Equipment Salaries Expense 400 400 1500 a d End Bal. 5000 6500 Beg. Bal с End Bal. 10000 10000 End Bal. Note payable с 10000 10000 End Bal.

Unadjusted Trila Balance Account Tittle Debit ($) Credit ($) Cash 10600 Account Receivable 11800 Supplies 8000 Prepaid insurance 3000 Unearned Income 3200 Common stock 9600 Retained Earning 13000 Rent Expense 500 Salaries Expense 400 Account Payable 2000 Consulting Service 6500 Note payable 10000 Equipment 10000 Total 44300 44300

*** Additional paid up capital is included in common stock

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