Question

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2015.

Accounts Payable	$	590
Accounts Receivable		290
Accumulated Depreciation—Equipment		890
Cash		290
Common Stock		190
Depreciation Expense		290
Equipment		3,190
Income Tax Expense		290
Interest Revenue		90
Notes Payable (long-term)		190
Notes Payable (short-term)		490
Prepaid Rent		90
Rent Expense		390
Retained Earnings		1,490
Salaries and Wages Expense		2,190
Service Revenue		6,170
Supplies		490
Supplies Expense		190
Travel Expense		2,590
Unearned Revenue		190

3.

value:
10.00 points

Required information

Required:

1-a.	Prepare an adjusted trial balance at September 30, 2015.

1-b.	Is the Retained Earnings balance of $1,490 the amount that would be reported on the balance sheet as of September 30, 2015?
	Yes No

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2015.      Accounts Payable $ 590   Accounts Receivable 290   Accumulated Depreciation—Equipment 890   Cash 290   Common Stock 190   Depreciation Expense 290   Equipment 3,190   Income Tax Expense 290   Interest Revenue 90   Notes Payable (long-term) 190   Notes Payable (short-term) 490   Prepaid Rent 90   Rent Expense 390   Retained Earnings 1,490   Salaries and Wages Expense 2,190   Service Revenue 6,170   Supplies 490   Supplies Expense 190   Travel Expense 2,590   Unearned Revenue 190 3. value: 10.00 points Required information Required: 1-a. Prepare an adjusted trial balance at September 30, 2015. 1-b. Is the Retained Earnings balance of $1,490 the amount that would be reported on the balance sheet as of September 30, 2015? Yes No
Total	$	73,450		$	73,450

Answer 1

Ans.1-(a)	Starbook Corporation
	Adjusted Trial Balance
	At September 30, 2015
	Particulars				Dr.($)	Cr.($)
	Accounts Payable					590
	Accounts Receivable				290
	Accumulated Depreciation -Equipment					890
	Cash				290
	Common Stock					190
	Depreciation Expense				290
	Equipment				3,190
	Income Tax Expense				290
	Interest Revenue					90
	Notes Payable (long-term)					190
	Notes Payable (short-term)					490
	Prepaid Rent				90
	Rent Expense				390
	Retained Earnings					1,490
	Salaries and Wages Expense				2,190
	Service Revenue					6,170
	Supplies				490
	Supplies Expense				190
	Travel Expense				2,590
	Unearned Revenue					190
	Total				$   10,290	$   10,290
Ans.1-(b)	Yes, the retained earning balance of $1,490, would be shown on the balance sheet as of September 30, 2015.