Question

Create Red Road Co.'s unadjusted trial balance for March 31, 20Y5, given the following balances (assume all accounts have a normal balance):

⋅ Property, Plant, and Equipment, 15,500
⋅ Wages Expense,8,750
⋅ Rent Revenue, 3,500
⋅ Unearned Revenue,4,270
⋅ Common Stock, 4,000
⋅ Retained Earnings,2,500
⋅ Accounts Payable, 3,280
⋅ Prepaid Expenses,1,200
⋅ Notes Payable, 3,950
⋅ Fees Earned,12,500
⋅ Cash, 2,250
⋅ Wages Payable,4,150
⋅ Rent Expense, 7,250
⋅ Accounts Receivable,3,200

Answer 1

The unadjusted trial balance of Red Road Co. for March 31, 20Y5 includes assets such as Property, Plant, and Equipment, Prepaid Expenses, Cash, and Accounts Receivable. The liabilities include Accounts Payable, Notes Payable, and Wages Payable. The stockholders' equity consists of Common Stock and Retained Earnings. The revenues include Fees Earned and Rent Revenue, while the expenses include Wages Expense and Rent Expense. There is also an unearned revenue liability.

Step-by-step explanation:

Red Road Co.'s Unadjusted Trial Balance for March 31, 20Y5

1. Assets

• Property, Plant, and Equipment: $15,500
• Prepaid Expenses: $1,200
• Cash: $2,250
• Accounts Receivable: $3,200

Liabilities

• Accounts Payable: $3,280
• Notes Payable: $3,950
• Wages Payable: $4,150

Stockholders' Equity

• Common Stock: $4,000
• Retained Earnings: $2,500

Revenues

• Fees Earned: $12,500
• Rent Revenue: $3,500

Expenses

• Wages Expense: $8,750
• Rent Expense: $7,250

Liabilities

• Unearned Revenue: $4,270