Prepare an adjusted trial balance for the following 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. 8th 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
Adjusted trial balance for the following transactions is as prepared below:
|Adjusted Trial balance|
|Particulars||Debit Balances||Credit Balances|
|Cost of goods sold||1,500|
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