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A junior bookkeeper, Bob Delisle, prepared the following trial balance on April 30, 2011,

A junior bookkeeper, Bob Delisle, prepared the following trial balance on April 30, 2011, for Big Party Inc.. Prepare a corrected trial balance based on the incorrect trial balance and the additional data.

Big Party Inc.

Trial Balance

April 30, 2011

DebitCredit

Cash$5,740

Accounts Receivable$6,720

Prepaid Insurance1,480

Supplies320

Land9,000

Machinery15,660

Accounts Payable5,000

Note Payable13,000

Common Shares6,000

Retained Earnings6,800

Dividends3,860

Service Revenue16,400

Salary Expense7,600

Utilities Expense3,700

Interest Expense2,100       ______

Total$58,760$44,620

Additional data:

1. Cash is overstated by $1,140.

2. Note Payable is understated by $1,440.

3. Service Revenue is understated by $6,400.

47) Prepare a trial balance for Salty Inc. dated June 30, 2011, based on the following transactions that occurred during the month of June. 

a. Owner invested $25,000 cash into the business and received common shares in return.

b. Rented an office and paid one month's rent, $900.

c. Purchased $400 of supplies on account.

d. Performed services on account, $5,500.

e. Paid $2,000 cash for office furniture.

f. Owner received a dividend of $700.

g. Collected $1,200 on account.

48) Prepare a trial balance for Zeng Inc. dated April 30, 2011, based on the following transactions that occurred during the month of June.

a. Owner invested $55,000 cash into the business and received common shares in return.

b. Rented an office and paid one month's rent, $700.

c. Purchased $600 of supplies on account.

d. Performed services on account, $7,500.

e. Paid $4,200 cash for office furniture.

f. Owner received a dividend of $500.

g. Collected $3,000 on account.

49) Identify the normal balance for asset and liability accounts. What is the reasoning behind the "normal balances" for these accounts?

50) Identify the normal balance for the Retained Earnings account and expense accounts. What is the reasoning behind the "normal balances" for these accounts?

Dec 07 2019 Read more Less More

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