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The following is a trial balance from Mismanaged Ltd. on March 31, 2018 is as fo

ID: 2604286 • Letter: T

Question

The following is a trial balance from Mismanaged Ltd. on March 31, 2018 is as follows:

Debit

Credit

Cash

$ 2,870

Accounts receivable

3,231

Office supplies

800

Equipment

3,800

Accounts payable

$ 2,666

Unearned revenue

1,200

Common shares

6,000

Retained earnings

2,795

Service revenue

2,380

Salaries and wages expense

3,400

Office expense

940

TOTAL

$ 15,041

$15,041

The following transactions took place in April 2018:

- Payments received from customers on account amounted to $1,320.

- A computer printer was purchased on account for $500.

- Services provided to clients and billed on account amounted to $3,890.

- $400 of supplies was purchased on account in April, and a physical count on April 31 showed that there was $475 of supplies on hand on April 31.

- When the Unearned Revenue account was reviewed, it was found that $825 of the balance was earned in April.

- Salaries and Wages Expense of $670 related to employee services provided in April was not yet recorded as at April 31 (will be paid in May).

- Payments to suppliers on account amounted to $2,125.

- Received invoices totaling $1,160 related to office expenses incurred in April. o Declared a dividend of $575 on April 31.

Required

1. Prepare the trial balance as at April 30, 2018, assuming that Mismanaged did not record closing entries at the end of March 2018. (Hint: It may be necessary to add one or more accounts to the trial balance.)

Debit

Credit

Cash

$ 2,870

Accounts receivable

3,231

Office supplies

800

Equipment

3,800

Accounts payable

$ 2,666

Unearned revenue

1,200

Common shares

6,000

Retained earnings

2,795

Service revenue

2,380

Salaries and wages expense

3,400

Office expense

940

TOTAL

$ 15,041

$15,041

Explanation / Answer

Mismanaged Ltd. Trial Balance For the Month Ended April 30, 2018 Debit   Credit Cash      2,065.00 Accounts receivable      5,801.00 Office Supplies          475.00 Equipment      4,300.00 Accounts Payable      1,441.00 Salaries & Wages Payable          670.00 Office Expense Payable      1,160.00 Unearned Revenue          375.00 Dividend Payable          575.00 Common Shares      6,000.00 Retained Earnings      2,220.00 Service Revenue      7,095.00 Salaries & Wages Expenses      4,070.00 Office Expense      2,100.00 Supplies Expenses          725.00 Total    19,536.00    19,536.00