Q.4TI - Horngren'S Financial And Managerial Accounting

Question

Question: Hooten Carpentry had the following accounts and account balances after adjusting entries. Assume all accounts have normal balances. Prepare the adjusted trial balance for Hooten Carpentry as of December 31, 2018. Cash \( 4,025 Common Stock \) ? Land 5,000 Accounts Receivable 660 Utilities Expense 400 Office Supplies 120 Accounts Payable 225 Utilities Payable 210 Accumulated Depreciation—Equipment 1,000 Service Revenue 12,000 Salaries Expense 550 Unearned Revenue 300 Supplies Expense 80 Depreciation Expense—Equipment 800 Equipment 10,000 Dividends 500.

Step-by-Step Solution

Answer

Answer   

Adjusted trial balance is shown as follows: 

HOOTEN CARPENTRY
Adjusted Trial Balance
December 31, 2018
	Balance
Account Title	Debit	Credit
Cash	$4,025
Accounts Receivable	660
Office Supplies	120
Land	5,000
Equipment	10,000
Accumulated Depreciation—Equipment		$1,000
Accounts Payable		225
Utilities Payable		210
Unearned Revenue		300
Common Stock		8,400
Dividends	500
Service Revenue		12,000
Salaries Expense	550
Depreciation Expense—Equipment	800
Supplies Expense	80
Utilities Expense	400	_______
Total	$22,135	$22,135

Step 1: Explanation on Adjusted Trial Balance

Adjusted trial balance is prepared after recording the adjusting entries in the books of accounts. It represents the final balances all accounts after all adjustments.

Step 2: Explanation on Trial Balance

In case of Hooten Carpentry, the debit and credit balance equals $22,135 in adjusted trial balance.