Question

The accounts in the ledger of Hickory Furniture Company as of December 31,2019 are listed in alphabetical order as follows.All accounts have normal balances.The balance of the cash account has been intentionally omitted

Particulars	Amount$
Accounts Payable	42,770
Accounts Receivable	1,16,900
Cash	?
Elaine Wells ,Capital	75,000
Elaine Wells , Drawing	24,000
Fees Earned	7,45,230
Insurance Expense	3,600
Land	50,000
Miscellaneous expense	9,500
Notes payable	50,000
Prepaid insurance	21,600
Rent expense	48,000
Supplies	4,275
Supplies Expense	6,225
Unearned rent	12,000
Utilities expense	26,850
Wages expense	5,80,700

Prepare an unadjusted trial balance,listing the accounts in their normal order and inserting the missing for cash

Answer 1

Trial Balance : The summary of all ledger accounts is known as a trial balance. The trial balance is set up to compare the total balances in the credit and debit columns, which must both be equal. Typically, the trial balance is performed prior to the creation of financial statements to verify the correctness of ledger balances.

Unadjusted Trial Balance : The summary of all ledger accounts that shows on the ledger accounts prior to making correcting journal entries is known as the unadjusted trial balance.

 

Hickory Furniture Company

Unadjusted trial balance

December 31,2019

Particulars	Debit$	Credit$
Cash	33,320
Accounts Receivable	1,16,900
Prepaid insurance	21,600
Supplies	4,275
Land	50,000
Accounts payable		42,770
Unearned rent		12,000
Notes payable		50,000
Capital		75,000
Drawings	24,000
Fees earned		7,45,230
Wages expenses	5,80,700
rent expenses	48,000
Utilities expenses	26,850
Supplies expenses	6,255
Insurance expense	3,600
Miscellaneous expense	9,500
	9,25,000	9,25,000

Calculation of cash balance

Cash balance = Total credit balances - Total debit balances

                      = $9,25,000 - $8,91,680

                      = $33,320

 

 

Therefore, the cash account balance is $33,320. The debit column and credit column of the trial balance is $9,25,000