Question

BE2-lO An inexperienced bookkeeper prepared the following trial balance. Prepare a correct trial balance, assuming all account balances are normal.

WALTER COMPANY

Trial Balance

December 31, 2012

	Debit $10,800	Credit
Prepaid Insurance		$ 3,500
Accounts Payable		3,000
Uhearned Service Revenue	2,200
Owner's Capital		9,000
Owner's Drawings		4,500
Service Revenue		25,600
Salaries and Wages Expense	18,600
Rent Expense		2,400
	$31,600	$48,000

P2-2A Desiree Clark is a licensed CPA. During the month 01 operations of her business, the following events and transactions occurred.

May 1       Clark invested $20,000 cash in her bLLsiness

                Hired a secretary-receptionist at a salary Of $2,000 per month.

               Purchased $2,500 Of supplies on account from Read Supply Company.

              Paid        rent Of $900 cash lor the month.

Completed H Lax assignment and billed client $3,200 for services provided.

Answer 1

1.

Walter Company
Trial Balance
December 31,2022
Particulars	Debit	Credit
Cash	10,800	-
Prepaid Insurance	3,500	-
Accounts Payable	-	3,000
Unearned Service Revenue	-	2,200
Owners Capital	-	9,000
Owners Drawings	4,500	-
Service Revenue	-	25,600
Salaries and Wages Expense	18,600	-
Rent Expense	2,400	-
Net Figure	39,800	39,800

Assets and expense will be the debit balance and Revenue and liability has the credit balance

2.

Date	Accounts and Explanations	Debit	Credit
1	Cash A/c Dr	20,000
	Capital A/c		20,000
	(Invested Cash)
2	No Entry Required
3	Office Supplies A/c	2,500
	Read Supply Company A/c		2,500
	(Purchased on credit)
4	Rent A/c Dr	900
	Cash A/c		900
	(Paid Rent)

Appointment of staff will not make in business monetory transactions