Q8SE - Horngren'S Financial And Managerial Accounting

Question

Preparing a trial balance 

Smithson Floor Coverings reported the following summarized data at December 31, 2018. Accounts appear in no particular order, and all have normal balances. 

Service Revenue \( 26,000 Salaries Payable \) 25,000 

Equipment 36,000 Salaries Expense 1,600 

Rent Expense 17,000 Cash 7,000 

Common Stock 24,000 Accounts Receivable 3,600 

Accounts Payable 2,200 Interest Payable 6,000 

Dividends 16,100 Utilities Expense 1,900 

Prepare the trial balance of Smithson Floor Coverings at December 31, 2018

Step-by-Step Solution

Answer

The required trial balance is prepared with a total of $83,200.

Step 1: Definition of Trial Balance

The Trial Balance is a worksheet prepared with the balance of all ledgers transferred on the debit or credit side.

Step 2: Preparation of trial balance

Smithson Floor Coverings
Trial Balance
Particulars	Debit ($)	Credit ($)
Cash	7,000
Accounts Receivables	3,600
Equipment	36,000
Accounts Payable		2,200
Salaries Payable		25,000
Interest Payable		6,000
Common Stock		24,000
Dividends	16,100
Service Revenue		26,000
Rent Expense	17,000
Salaries Expense	1,600
Utility Expense	1,900
Total	83,200	83,200