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
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