Question

Problem 3 – Preparation of a trial balance

Using the following financial data listed in alphabetical order.

Accounts payable $ 8,000.00	Insurance expense 1,500
Accounts receivable 4,500.00	Rent expense 3,000
Cash 6,200.00	Service revenue 12,500
Dawn Edwards, capital 19,500.00	Salary expense 2,000
Dawn Edwards, drawing 6,000.00	Supplies 800.00
Equipment 12,000.00	Utility expense 4,000.00

Required:

Using the page below, prepare a trial balance in proper form for Management Consulting Services at July 31, 20XX.

Answer 1

Solution:

Management Consulting Services
Trial Balance - July 31, 20XX
Particulars	Debit	Credit
Cash	$6,200.00
Accounts receivables	$4,500.00
Office supplies	$800.00
Equipment	$12,000.00
Accounts payable		$8,000.00
Dawn Edwards, capital		$19,500.00
Dawn Edwards, Drawings	$6,000.00
Service Revenue		$12,500.00
Insurance expense	$1,500.00
Rent Expense	$3,000.00
Salary expense	$2,000.00
Utilities expense	$4,000.00
Total	$40,000.00	$40,000.00