Income Statement Accounts Sales Revenue, Salaries Expense, Wages Expense, and In
ID: 2386374 • Letter: I
Question
Income Statement AccountsSales Revenue, Salaries Expense, Wages Expense, and Interest Expense.
a. The owner opened a business account and deposited $60,000 in the bank.
b. The owner borrowed and deposited $30,000 on a note payable to the bank.
c. The owner paid one year of rent in advance on the restaurant space, $18,000 cash.
d. The owner purchased equipment $46,000; $16,000 in cash and the balance on account.
e. Furnishings were purchased for $30,400 cash.
f. The owner purchased $3,200 of food inventory on account and paid $3,800 cash for beverage inventory.
g. The owner purchased supplies for $2,650 cash.
h. The owner purchased $3,800 of food inventory on account.
i. The owner paid $2,700 for a one-year liability and casualty insurance policy.
j. Employees were paid wages of $12,800 and salaries of $2,400.
k. Sales revenue for the first month was $42,800; 90% cash, 8% credit cards, and 2% on accounts receivable.
l. The owner paid $16,600 on accounts payable.
m. The owner paid $8,000 on note payable, plus interest of $960.
#1- What is the balance of the cash account after unadjusted trial balance for the month ended March 31, 2006?
#2- How much is the balance of Debit account after unadjusted trial balance...
#3- How much is the balance of Credit account after unadjusted trial balance...
Explanation / Answer
Cash Account: Particulars Amount Capital $60,000.00 Notes Payable $30,000.00 Sales $38,520.00 Total1= $128,520.00 Particulars Amount Prepaid Rent $18,000.00 Equipment $16,000.00 Furnishings $30,400.00 Beverage Inventory $3,800.00 Supplies $2,650.00 Insurance $2,700.00 Wages $12,800.00 Salaries $2,400.00 Accounts Payable $16,600.00 Notes Payable $8,960.00 Total2= $114310 Balance c/d=Total1-Total2=$14,210.00 The balance of cash account after unadjusted trial balance for the month ended March 31, 2006 is $14,210. Unadjusted Trial Balance: Particulars Debit Cash $14,210.00 Prepaid Rent $18,000.00 Food Inventory $7,000.00 Beverage Inventory $3,800.00 Accounts Receivable $4,280.00 Supplies $2,650.00 Wages $12,800.00 Salaries $2,400.00 Insurance Policy $2,700.00 Interest $960.00 Equipment $46,000.00 Furnishngs $30,400.00 Total= $145,200.00 Particulars Credit Notes Payable $22,000.00(30000-8000 Accounts Payable $20,400.00(46000-16000+3200+3800-16600) Sales $42,800.00 Capital $60,000.00 Total= $145,200.00 The debit balance and credit balance after unadjusted trial balance is $145,200.