Question

QuickBooks Project

Prepare a Trial Balance for a Company for Jan. given the following information

Jan 1, 2019	Began business by depositing $7,000 in a bank account in the name of the company, in exchange for 7,000 shares of $1 par value common stock
Jan 2, 2019	Ordered supplies, $800
Jan 2, 2019	Borrowed $12,000 from the bank that is due in 2 years at 10%
Jan 3, 2019	Purchased equipment for cash $4,000
Jan 4, 2019	Made two months' rent payment on the store, $2,000
Jan 7, 2019	Received supplies ordered on Jan 2 and agreed to pay half on the amount in 10 days and the rest in 30 days
Jan 8, 2019	Purchased merchandise inventory on account, $7,000
Jan 9, 2019	Paid for advertising to announce the grand opening, $7,000
Jan 12, 2019	Grand opening
Jan 17, 2019	paid half the amount owed on the supplies purchased on Jan 7.
Jan 19, 2019	weekly sales of $3,000, merchandise costing $2,000, half cash and half on account
Jan 26, 2019	Received payment on account $700
Jan 26, 2019	Weekly cash sales of $4,500, merchandise costing $2,000, half cash and half on account
Jan 31, 2019	Received utility bill for January, $300
Jan 31, 2019	one month's rent expired
Jan 31, 2019	accrued one month's interest, $100
Jan 31, 2019	Depreciation expense for the month is $100
Jan 31, 2019	The income tax rate is 30%

Here is a list of the accounts the company uses:

Account	Type
Cash	Bank
Accounts receivable	other current asset
merchandise inventory	other current asset
prepaid rent	other current asset
supplies	other current asset
equipment	Fixed asset
equipment - accum Depr	Fixed asset
Accounts payable	other current liability
Income taxes payable	other current liability
payroll liabilities	other current liabilities
notes payable	long term liabilities
common stock	equity
income summary	equity
retained earnings	equity
sales	income
cost of goods sold	cost of goods sold
advertising expense	expense
depreciation expense	expense
income tax expense	expense
payroll expense	expense
rent expense	expense
supplies expense	expense
utility expense	expense

Answer 1