Question

Create Trial Balace with T-Accounts. Then Create Income Statement, Statement of Retained Earnings, and finaly a Balance Sheet.

CASH A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO COMMON STOCK		45000	BY PREPAID RENT		9000
TO NOTE PAYABLE		18000	BY PREPAID INSURANCE(9MONTHS)		3600
TO ACCOUNTS RECEIVABLE		4000	BY REFREIGATOR		13000
BY SALES TAX PAYABLE		760	BY DELIVERY VAN		25000
BY SALES TAX PAYABLE		240	BY ADVERTISING EXPENSE		1200
BY SALES TAX PAYABLE		360	BY PREPAID ADVERTISING EXPENSE		300
BY SALES		9500	BY LEGAL EXPENSE		2000
BY SALES		3000	BY ACCOUNTS PAYABLE		850
BY SALES		4500	BY CREDIT CARD EXPENSE		675
			BY ACCOUNT PAYABLE		2400
			BY ACCOUNTS PAYABLE		21900
			BY DIVIDEND		50
			INTEREST PAYABLE		22.5
			BY NOTE PAYABBLE		452.5
			BY CLOSIN BALANCE		4910
		85360			85360
		COMMON STOCK
DEBIT		$ AMT	CREDIT		$ AMT
BY CLOSING STOCK		45000	BY CASH		45000
		45000			45000
		PREPAID RENT A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		9000	BY RENT EXPENSE		1500
			BY CLOSING BALANCE		7500
		9000			9000
		PREPAID INSURANCE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		3600	BY INSURANCE EXPENSE		400
			BY CLOSING BALANCE		3200
		3600			3600
		COMPUTER EQUIPMENT A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO NOTE PAYABLE		2700	BY PROVISION FOR DEPRECIATION		45
			BY CLOSING BALANCE		2655
		2700			2655
		NOTE PAYABLE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		475	BY COMPUTER EQUIPMENT(OFFICE MART)		2700
			BY CASH(WELLS FARGO)		18000
TO CLOSING BALANCE		20225
		20700			20700
		REFREIGARATOR A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		13000	BY PROVISION FOR DEPRECIATION		100
			BY CLOSING BALANCE		12900
		13000			12900
		DELIVERY VAN A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		25000	BY PROVISION FOR DEPRECIATION		350
			BY CLOSING BALANCE		24650
		25000			25000
		PREPAID ADVERTISING A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		300	BY ADVERTISING EXPENESE		275
			BY CLOSING BALANCE		25
		300			300
		CREDIT CARD EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		675	BY PROFIT AND LOSS A/C		675
		675			675
		LEGAL EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		2000	BY PROFIT AND LOSS A/C		2000
		2000			2000
		ADVERTISNG EXPENSE A/C
TO CASH		1200
TO INVENTORY FRUIT		600
TO INVENTORY BASKET		25
TO PREPAID ADVERTISING		275	BY PROFIT AND LOSS A/C		2100
		2100			2100
		ACCOUNTS PAYABLE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		850	BY INVENTORY (FRUIT)		16400
TO CASH		2400	BY INVENTORY (BASKETS)		2400
TO CASH		21900	BY SUPPLIES		850
TO CLOSIN BALANCE		250	BY INVENTORY		5500
			BY UTILITY EXPENSE		250
		25400			25400
		INVENTORY A/C
DEBIT		$ AMT	CREDIT		$ AMT
ACCOUNT PAYABLE		16400	BY COGS		2500
ACCOUNT PAYABLE		2400	BY COGS		250
ACCOUNT PAYABLE		5500	BY ADVERTISING		625
			BY COGS		3850
			BY COGS		3000
			BY COGS		3095
			BY CLOSING STOCK		10980
		24300			24300
		ACCOUNT RECEIVABLE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO SALES		4000	TO CASH		4000
		4000			4000
		COGS A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO INVENTORY FRUIT		2500
TO INVENTORY BASKETS		250
TO INVENTORY FRUIT		3500
TO INVENTORY BASKETS		350
TO INVENTORY FRUIT		2700
TO INVENTORY BASKETS		300	BY PROFIT AND LOSS ACCOUNT		12695
TO INVENTORY FRUIT		2815
TO INVENTORY BASKETS		280
		12695			12695
		SALES A/C
DEBIT		$ AMT	CREDIT		$ AMT
			CASH		9500
TO PROFIT AND LOSS ACCOUNT		21000	CASH		3000
			CASH		4500
			ACCOUNT RECEIVABLE		4000
		21000			21000
		SALES TAX PAYABLE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		1360	CASH		760
			CASH		240
			CASH		360
		1360			1360
		UTILITY EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO ACCOUNT PAYABLE		250
			BY PROFIT AND LOSS ACCOUNT		250
		250			250
		DIVIDEND A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		50
			BY PROFIT AND LOSS ACCOUNT		50
		50			50
		SUPPLIES EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO ACCOUNTS PAYABLE		850
TO SUPPLIES PAYABLE		835	BY PROFIT AND LOSS ACCOUNT		1685
		1685			1685
		SUPPLIES PAYABLE A/C
DEBIT		$ AMT	CREDIT		$ AMT
BY CLOSING BALANCE		835	BY SUPPLIES		835
		835			835
		WAGES EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO WAGES PAYABLE		1500	TO CLOSING BALANCE		1500
		1500			1500
		WAGES PAYABLE A/C
DEBIT		$ AMT	CREDIT		$ AMT
BY CLOSING BALANCE		1500	BY WAGES EXPENSE		1500
		1500			1500
		DEPRECIATION A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO ACCUMATED DEPRECIATION COMPUTER		45
REFRIGARATOR		100
DELIVERY VAN		350	BY PROFIT AND LOSS ACCOUNT		495
		495			495
		PROVISION FOR DEPRECIATION A/C
DEBIT		$ AMT	CREDIT		$ AMT
			BY ACCUMATED DEPRECIATION COMPUTER		45
TO COMPUTER		45	REFRIGARATOR		100
REFREIGARATOR		100	DELIVERY VAN		350
DELIVERY VAN		350
		495			495
		INSURANCE EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO PREPAID INSURANCE		400	BY PROFIT AND LOSS A/C		400
		400			400
		INTEREST EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO INTEREST PAYABLE		120
			BY PROFIT AND LOSS A/C		120
		120			120
		INTEREST PAYABLE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO CASH		22.5	BY INTEREST EXPENSE		120
TO PROFIT AND LOSS A/C		120	BY NOTE PAYABLE		22.5
		142.5			142.5
		RENT EXPENSE A/C
DEBIT		$ AMT	CREDIT		$ AMT
TO PREPAID RENT		1500	BY PROFIT AND LOSS A/C		1500
		1500			1500

Answer 1

In the given problem, some of the accounts like Equity / Capital account, opening retained earnings balance etc are missing . It is not possible to prepare Balance Sheet and Statemnt of retained earnings without that information. The trail balance also cannot be tallied without those accounts. However, a trail balance with the given balances is prepared. The difference which is attributable to the missing accounts is transferred to Suspense account.

Trial Balance
Particulars	Debit	Credit
CASH A/C	4,910.00
COMMON STOCK
PREPAID RENT A/C	7,500.00
PREPAID INSURANCE A/C	3,200.00
COMPUTER EQUIPMENT A/C	2,700.00
NOTE PAYABLE A/C		20,225.00
REFREIGARATOR A/C	13,000.00
DELIVERY VAN A/C	25,000.00
PREPAID ADVERTISING A/C	25.00
CREDIT CARD EXPENSE A/C	675.00
LEGAL EXPENSE A/C	2,000.00
ADVERTISNG EXPENSE A/C	2,100.00
ACCOUNTS PAYABLE A/C		250.00
INVENTORY A/C	10,980.00
ACCOUNT RECEIVABLE A/C	-
COGS A/C	12,695.00
SALES A/C		21,000.00
SALES TAX PAYABLE A/C		-
UTILITY EXPENSE A/C	250.00
DIVIDEND A/C		50.00
SUPPLIES EXPENSE A/C	1,685.00
SUPPLIES PAYABLE A/C		835.00
WAGES EXPENSE A/C	1,500.00
WAGES PAYABLE A/C		-
DEPRECIATION A/C	495.00
PROVISION FOR DEPRECIATION A/C
INSURANCE EXPENSE A/C	400.00
INTEREST PAYABLE A/C		120.00
RENT EXPENSE A/C	1,500.00
Suspense account		48,135.00
	90,615.00	90,615.00