Question

4. Prepare an unadjusted trial balance.

Required information

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The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	48,500
Accounts Receivable		32,700
Land		117,800
Accounts Payable						16,000
Notes Payable (due in 2 years)						37,000
Common Stock						107,000
Retained Earnings						39,000
Totals	$	199,000			$	199,000

The following is a summary of the transactions for the year:

1.		January		12		Provide services to customers on account, $69,400.
2.		February		25		Provide services to customers for cash, $78,800.
3.		March		19		Collect on accounts receivable, $46,400.
4.		April		30		Issue shares of common stock in exchange for $37,000 cash.
5.		June		16		Purchase supplies on account, $13,500.
6.		July		7		Pay on accounts payable, $12,000.
7.		September		30		Pay salaries for employee work in the current year, $71,200.
8.		November		22		Pay advertising for the current year, $23,200.
9.		December		30		Pay $3,600 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued interest on the notes payable at year-end amounted to $3,200 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,200 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,000.

4. Prepare an unadjusted trial balance.

Answer 1

we will journalize the entries for easy understanding

January 12	account receivable	69400
	service revenue		69400
Feb 25	cash	78800
	service revenue		78800
MAR 19	cash	46400
	account receivable		46400
Apr 30	cash	37000
	common stock		37000
June 16	supplies	13500
	account payable		13500
July 7	account payable	12000
	cash		12000
Sept 30	salary	71200
	cash		71200
Nov 22	advertising expense	23200
	cash		23200
December 30	dividend	3600
	cash		3600

find closing balance before adjustment

cash = 48500+78800+46400+37000-12000-71200-23200-3600

=100700

account receivable = 32700+69400-46400 = 55700

account payable =16000+13500-12000=17500

common stock = 37000+107000=144000

service revenue=69400+78800=148200

unadjusted trial balance

	debit	credit
cash	100700
Account receivable	55700
supplies	13500
land	117800
account payable		17500
Notes payable		37000
common stock		144000
dividend	3600
retained earnings		39000
service revenue		148200
advertising expense	23200
salary expense	71200
	385700	385700