3-26E - Horngren'S Financial And Managerial Accounting

Question

Refer to the data in Exercise E3-25, and prepare an adjusted trial balance.

Step-by-Step Solution

Answer

Adjusted trial balance is shown as follows: 

ALL MOPPED UP COMPANY
Adjusted Trial Balance
December 31, 2018
	Balance
Account Title	Debit	Credit
Cash	$800
Office Supplies	300
Prepaid Insurance	20
Equipment	30,000
Accumulated Depreciation—Equipment		$2,500
Accounts Payable		2,400
Salaries Payable		310
Unearned Revenue		300
Common Stock		15,300
Dividends	5,000
Service Revenue		25,400
Salaries Expense	7,310
Supplies Expense	1,700
Depreciation Expense—Equipment	500
Insurance Expense	580	_______
Total	$46,210	$46,210

Step-by-Step-Solution Step 1: Definition on Adjusted Trial Balance

After the adjusting entries are recorded, it is posted into the ledger account, then the balance of these account is used to prepare adjusted trial balance. 

Step2: Explanation on Trial Balance

In case of All mopped up company, the debit and credit balance equals $46,210 in adjusted trial balance.