Trial balance for Ariella Services as of the end of their first fiscal year, April 1, 2015 to March 31, 2016.
No adjustments have been made for the year.
| |
Debit |
Credit |
| Cash |
mce_markernbsp; 70,000 |
|
| Accounts receivable |
40,000 |
|
| Supplies |
5,000 |
|
| Prepaid insurance |
30,000 |
|
| Equipment |
50,000 |
|
| Accounts payable |
|
mce_markernbsp; 14,000 |
| Unearned consulting revenue |
|
40,000 |
| Common stock |
|
65,000 |
| Consulting revenue |
|
200,000 |
| Salaries expense |
67,500 |
|
| Advertising expense |
25,000 |
|
| Rent expense |
31,500 |
|
| Totals |
$319,000 |
$319,000 |
Additional information as of March 31:
Salaries of $5,000 have been earned as of March 31, 2016 but the pay period does not end until April 5.
$12,000 in services were provided to customers for which they had paid for in advance.
Advertising was prepaid for 5 years on December 31, 2015 and charged to expense (this is the only item in expense); advertising services related to this contract were provided from January - March in the amount of $10,000,
The equipment was purchased on April 1, 2015; useful like of 10 years with an estimated $5,000 in salvage value. The company uses the straight line method.
A 2-year insurance policy for $30,000 was purchased on April 1, 2015 and recorded correctly in the accounts.
Supplies counted on March 31 totaled $2,500.
$20,000 in services had been provided to customers on March 31 but not yet recorded.
Please use references such as (1), (2) etc. when recording adjustments on your worksheet for the above items, even though Appendix 3A worksheet does not use these.
References should be set up as separate columns to not prevent adjustment numbers from being otherwise added and subtracted as shown below.
All numbers should be right-aligned in accounting format.