Question

Prepare an adjusted trial balance for the following transactions?

transactions:

Dec. 1 Family members contributed $50,000 cash to the business in exchange for capital.

Dec. 2 Purchased $10,800 of equipment for the store paying cash.

Dec. 3 Paid $4,500 for a 9-month insurance policy starting on December 1.

Dec. 4 Paid $18,000 cash to purchase land to be used in operations.

Dec. 5 Purchased office supplies on account, $3,000.

Dec. 6 Borrowed $28,000 from the bank for business use. You signed a bank payable note for an interest rate of 5% APR.

Dec. 7Paid $800 for advertising expenses.

Dec. 8 Purchased inventory (dog food) for the store at a cost of $1,500

Dec. 9 Paid for office supplies $3,000

Dec 10 Received a bill for utilities to be paid in January, $200.

Dec 31 Service Revenues earned during the month included $18,500 cash and $2,000 on account.

Dec. 31 Sold one hundred percent of the dog food purchased on Dec. 8^th for $2,100 in cash.

Dec. 31 Paid employees' salaries $2,000 and building rent $800.

Dec. 31 Dividends of $200 were paid.

Dec. 31 Customer prepaid $1,000 for boarding services in January

Answer 1

Adjusted trial balance for the following transactions is as prepared below:

Adjusted Trial balance
Dec-31
Particulars	Debit Balances	Credit Balances
Cash	58,000
Account Receivable	2,000
Office Supplies	3,000
Inventory	0
Prepaid Insurance	4,500
Land	18,000
Equipment	10,800
Accounts payable		0
Note Payable		28000
Utilities Payable		200
Unearned Revenue		1000
Capital		50000
Dividend	200
Service Revenue		20500
Sales Revenue		2100
Cost of goods sold	1,500
Advertising expense	800
Utilities Expense	200
Salaries Expense	2,000
Rent Expense	800
Total	101,800	101800