Question

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have a normal debit or credit balances. Assume the year ended on September 30, 2018.
Accounts Payable $603
Accounts Receivable 303
Accumulated Depreciation 903
Cash 303
Common Stock 203
Deferred Revenue 203
Depreciation Expense 303
Equipment 3,203
Income Tax Expense 303
Interest Revenue 103
Notes Payable (long-term) 203
Notes Payable (short-term) 503
Prepaid Rent 103
Rent Expense 403
Retained Earnings 1,503
Salaries and Wages Expense 2,203
Service Revenue 6,209
Supplies 503
Supplies Expense 203
Travel Expense 2,603
Required:

1-a. Prepare and adjusted trial balance on September 30, 2018.

2-b. Is the Retained Earnings balance of $1,503 the amount that would be reported on the balance sheet as of September 30, 2018?

Answer 1

Answer:

Explanation:

Starbooks Corporation

Trial balance as at September 30, 2018.

Account. DR. CR

Accounts Payable $603

Accounts Receivable $303

Acc Depreciation $903

Cash $303

Common Stock $203

Deferred Revenue. $203

Depreciation Expense $303

Equipment. $3,203

Income Tax Expense $303

Interest Revenue $103

Notes Payable (long-term) $203

Notes Payable (short-term) $503

Prepaid Rent $103

Rent Expense $403

Retained Earnings $4,570

Sal. & Wages Exp. $2,203

Service Revenue $6,209

Supplies $503

Supplies Expense $203

Travel Expense $2,603

Total. $12,100 $12,100

The retained earning balance that would be reported in the balance sheet at the end of September is $4,570