6. A trial balance A) is a list of accounts with their balances at a given point

Question

6.

A trial balance

A)

is a list of accounts with their balances at a given point intime.

B)

will not balance if a correct journal entry is posted twice.

C)

will tell you if a transaction is not posted at all.

D)

proves the factual accuracy of journalized transactions.

5. 7 pnts Journalize the following business transactions in generaljournal form. Identify each transaction by number. Youmay omit dates and explanations of the transactions.           1. Received $35,000 from stockholders. 2. Purchased equipment for $35,000, paying $15,000 in cash andgiving a note payable for the remainder 3. Paid $3,000 rent for the month. 4. Recorded $12,500 of services provided on account. 5. Paid wages of $7,500. 6. Received $7,000 in cash for services provided. 7. Collected $2,000 from customers on account.

Explanation / Answer

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General Journal Book

1

Cash $35,000       Common stock $35,000

2

Equipment $35,000        Cash $15,000        NotePayable $20,000

3

Rent expense $3,000        Cash $3,000

4

Accounts receivable $12,500        Servicerevenue $12,500

5

Wages expense $7,500        Cash $7,500

6

Cash $7,000         Servicerevenue $7,000

7

Cash $2,000        Accountsreceivable $2,000

6

Answer A. A trial balance is a list of accounts with theirbalances at a given point in time.

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