26E - Horngren'S Financial And Managerial Accounting

Question

Question: The accountant for Countryside Painting Specialists is having a hard time preparing the trial balance as of November 30, 2018: 

Account Title                                                    Debit                 Credit

Accounts Receivable                                   1,300

PaintingEquipment                                    13,500

Cash                                                               12,100

Advertising Expense                                      550

Dividends                                                                                   3,500

Accounts Payable                                                                     3,300

Rent Expense                                                 1,800

Common Stock                                             15,000

Service Revenue                                                                        15,600

Unearned Revenue                                       1,700

Salaries Expense                                           2,400

Office Supplies                                                                          200

Utilities Expense                                            250

Total                                                                48,600                   22,600

Prepare the corrected trial balance as of November 30, 2018. Assume all amounts are correct and all accounts have normal balances.

Step-by-Step Solution

Answer

The advertising expense is the cost of promotion and the corrected trial balance is prepared with a total of $35,600

Step-by-Step Solution Step 1: Definition of advertising expense

The advertising expense is defined as the cost incurred by the business for the promotion of the product or the business

Step 2: Preparation of corrected trial balance

COUNTRYSIDE PAINTING SPECIALISTS
Trial Balance
November 30, 2018
Accounts Titles	Debit ($)	Credit ($)
Painting Equipment	$13,500
Cash	$12,100
Accounts Receivables	$1,300
Advertising Expense	$550
Dividends	$3,500
Accounts Payable		$3,300
Rent Expense	$1,800
Common Stock		$15,000
Service Revenue		$15,600
Unearned Revenue		$1,700
Salaries Expense	$2,400
Office Supplies	$200
Utilities Expense	$250
Total	$35,600	$35,600