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Horngren'S Financial And Managerial Accounting
Found in: Page 97

Short Answer

Question: Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance The following transactions occurred during the month for Teresa Parker, CPA:

Jun. 1 Parker opened an accounting firm by contributing $13,200 cash and office furniture with a fair market value of $5,300 in exchange for common stock.

5 Paid monthly rent of $1,300.

9 Purchased office supplies on account, $600.

14 Paid employee’s salary, $1,900.

18 Received a bill for utilities to be paid next month, $370.

21 Paid $500 of the accounts payable created on June 9.

25 Performed accounting services on account, $5,700.

28 Paid cash dividends of $6,700

Requirements 3. Prepare the trial balance as of June 30, 2018

The required trial balance is prepared in step 2.

See the step by step solution

Step by Step Solution

Step-by-Step SolutionStep 1:Definition of trial Balance

The Trial Balance is defined as the accounting worksheet which helps in checking the accuracy of the financial preparation.

Step 2:Preparation of Trial Balance

Teresa Parker, CPA

Trial Balance

June 30, 2018

Account Title

Debit ($)

Credit ($)

Cash

$2,800

Accounts Receivables

$5,700

Office Supplies

$600

Office furniture

$5,300

Accounts Payable

$100

Utilities Payable

$370

Common Stock

$18,500

Dividends

$6,700

Service Revenue

$5,700

Salaries Expense

$1,900

Rent Expense

$1,300

Utilities Expense

$370

Total

$24,670

$24,670

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