Q13SE
Question
Question:Seth’s Tax Services had the following accounts and account balances after adjusting entries. Assume all accounts have normal balances.Cash Land Accounts Payable Utilities Payable Accumulated Depreciation—Equipment Service Revenue Supplies Expense Dividends \( ? 26,000 150 3,700 1,800 75,000 1,100 14,000 Equipment Accounts Receivable Common Stock Office Supplies Utilities Expense Unearned Revenue Depreciation Expense—Equipment Salaries Expense \) 11,000 4,950 700 22,600 1,650 900 1,900 5,600Prepare the adjusted trial balance for Seth’s Tax Services as of December 31, 2018.
Step-by-Step Solution
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The adjusted trial balance is shown as follows:
| Seth’s Tax Services | ||
| Adjusted Trial Balance | ||
| December 31, 2018 | ||
| Balance | ||
Account Title | Debit | Credit |
Cash | $37,250 |
|
Accounts Receivable | 4,950 |
|
Office Supplies | 700 |
|
Land | 26,000 |
|
Equipment | 11,000 |
|
Accumulated Depreciation—Equipment |
| $1,800 |
Accounts Payable |
| 3,700 |
Utilities Payable |
| 150 |
Unearned Revenue |
| 900 |
Common Stock |
| 22,600 |
Dividends | 14,000 |
|
Service Revenue |
| 75,000 |
Salaries Expense | 5,600 |
|
Depreciation Expense—Equipment | 1,900 |
|
Supplies Expense | 1,100 |
|
Utilities Expense | 1,650 | _______ |
Total | $104,150 | $104,150 |
In the case of Seth’s Tax Services, the debit and credit balance equals $104,150 in the adjusted trial balance.
The cash balance is calculated as follows: