Question

		How do you figure out the adjusted trial balance if this is the journal entry:
		Bank account Dr. $ 7,500 To common stock a/c $ 7,500 Rent a/c Dr. $     650 to banck a/c $      650 Insurance Premium a/c Dr. $     840 To bank a/c $      840 Equipment a/c DR. $ 3,600 To cash a/c $ 3,600 Office supplies a/c Dr. $     300 To XYZ company a/c $      300 Cash account Dr. $ 6,000 To Sales a/c $ 6,000 ABC INC a/c Dr. $ 3,400 To Sales a/c $ 3,400 Cash a/c Dr. $ 1,800 To ABC Inc a/c $ 1,800 XYZ company a/c Dr. $     170 To Bank a/c $      170 Wages a/c Dr. $ 5,040 To bank a/c $ 5,040 Dividents a/c Dr. $     200 To Bank a/c $      200 and if this is the unadjusted trial balance: Account Debit Credit Cash 4800 Accounts receivable 1600 Office supplies 300 Prepaid insurance 840 Equipment 3600 Accounts payable 130 Common stock 7500 Dividend 200 Service revenue 9400 Rent expense 650 Wages expense 5040 Totals $ 17030 17030

Answer 1

1	Income statement
		$	$
	Cash sales	6,000
	Credit Sales	3,400
	Total service revenue		9,400
	Less: Expenses;
	Rent Expenses	650
	Wages Expense	5,040
	Total expenses		5,690
	Net income ( $ 9,400 - $ 5,690 )		3,710
2	Beginning balance of retained earnings	-
	add: Net income for the year	3,710
	Less: Dividend	(200)
	Ending balance of retained earnings	3,510
3	Adjusted Trial Balance
	Account	Debit $	Credit $
	Cash	4,800
	Accounts receivable	1,600
	Office Supplies	300
	Prepaid Insurance	840
	Equipment	3,600
	Accounts Payable		130
	Common Stock		7,500
	Retained Earnings		3,510
	TOTAL	11,140	11,140