Question

All nine transactions for Reid’s Dairy Co. for July 2017, the first month of operation, are recorded in the following T accounts:

Cash			Computer Equipment			Advertising Expense
(1) $9,000	$755 (8)		(2) $3,165			(7) $1,900
(6) $5,000	$1,500 (4)
	$600 (9)
Revenue Earned			F. Reid, Capital			Accounts Receivable
	$5,235 (5)			9000 (1)		(3) $5,235
	$6,000 (6)					(6) $1,000
F. Reid, Withdrawals			Accounts Payable			Rent Expense
(8)   $755			(9) $600	$3,165 (2)		(4) 1,500
				$1,900 (7)

Required:

1. Foot and total, if required the T-Accounts directly in the T-Accounts supplied.
2. Prepare a trial balance, listing the accounts and their balances in proper order.

Answer 1

Requirement A:

Cash			Computer Equipment			Advertising Expense
(1) $9,000	$755 (8)		(2) $3,165			(7) $1,900
(6) $5,000	$1,500 (4)
	$600 (9)
Bal. $11,145			Bal. $3,165			Bal. $1,900
Revenue Earned			F. Reid, Capital			Accounts Receivable
	$5,235 (5)			$9000 (1)		(3) $5,235
	$6,000 (6)					(6) $1,000
	$11,235 Bal.			$9,000 Bal.		Bal. $6,235
F. Reid, Withdrawals			Accounts Payable			Rent Expense
(8)   $755			(9) $600	$3,165 (2)		(4) 1,500
				$1,900 (7)
Bal. $755				$4,465 Bal.		$1,500 Bal.	…………..

Requirement B:

Trial Balance
Account title	Debit	Credit
Cash	$11,145
Accounts receivable	$6,235
Computer equipment	$3,165
Accounts payable		$4,465
F.Reid, capital		$9,000
F.Reid, withdrawals	$755
Revenue earned		$11,235
Rent expense	$1,500
Advertising expense	$1,900
Total	$24,700	$24,700