Question

Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,100; Buildings, $41,000; Salaries Payable, $300; Common Stock, $21,000; Accounts Payable, $1,500; Utilities Expense, $2,300; Prepaid Insurance, $1,100; Service Revenue, $18,100; Accounts Receivable, $2,800; Cash, $2,100; Salaries Expense, $5,000; Retained Earnings, $14,500. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.

Answer 1

Cobras Incorporated

Trial Balance as at March 31.

Debit Credit

Supplies $1,100

Buildings $41,000

Cash $2,100

Accounts Receivable $2,800

Prepaid Insurance $1,100

Salaries Payable $300

Accounts Payable $1,500

Common Stock $21,000

Retained Earnings $14,500

Service Revenue $18,100

Utilities Expense $2,300

Salaries Expense $5,000

Totals $55,000 $55,000

Step-by-step explanation:

A Trial Balance is used to check mathematical accuracy in ledger Accounts. It represents a list of Balances : Debit and Credit extracted from the Ledger Accounts.