Answer:
Total balance of debit in trial balance = Total balance of credit in trial balance
Explanation:
Maquoketa service
Journal entry
1. Dr Cash 40000
Cr Capital- Jayford 40000
(Investment in company)
2. Dr Salary expense 5000
Cr Salary payable 5000
(Salary expense for the m/o of may-2017 @$2500 each)
3. Dr prepaid rent 24000
Cr Cash 24000
( Paid advance rent for warehouse)
4. Dr Furniture and equipment 33000
Cr Cash 12000
Cr Accounts payable 21000
(Purchase furniture and equipment on cash and on account)
5. Dr Prepaid insurance 1600
Cr Cash 1600
( Purchase one year insurance policy of furniture ad equipment)
6. Dr office supplies 600
Cr Cash 600
(Purchase basic office supplies)
7. Dr Office supplies 1600
Cr Accounts payable 1600
( Purchase office supplies on account)
8. Dr Cash 8000
Dr Account receivable 13000
Cr Sales revenue 21000
( Revenue earned on cash and on account)
9. Dr Accounts payable 400
Cr Cash 400
( Paid cash to supplier)
10. Dr Cash 2800
Cr Account receivable 2800
( Received cash from customer which was due)
11. Dr Utilities expense 400
Cr utilities payable 400
( utility expense for the month)
12. Dr Salary payable 5000
Cr Cash 5000
(Paid salary of 2 employee).
Maquoketa service
T-account
Cash Capital - Jayford
Dr___________Cr____ DR ___________CR
40000 ---- 24000 ----- 40000
---- 12000
--- 1600
--- 600
8000 --- 400
2800 --- 5000
Salary expense Salary payable
Dr____________Cr______ DR ___________Cr
5000 ---- 5000 ------5000
Prepaid rent Furniture and equipment
Dr ____________Cr____ Dr _____________Cr
24000 ------ 33000 --------
Accounts payable Prepaid insurance
Dr_____________Cr___ Dr ___________Cr_
-------21000 1600 -----
------ 1600
400 -----
Office supplies Account receivable
Dr_____________Cr___ Dr ______________Cr
600 ----- 13000 ------
1600 ----- 2800
Utilities expense Utilities payable
Dr____________Cr___ Dr __________Cr__
400 ------ -------400
Sales revenue
Dr_______________Cr __________________
------21000 -------
Maquoketa Services
Trial Balance
Cash 7200 40000 Capital-Jayford
Salary expense 5000 Salary payable
Prepaid rent 24000 22200 Account payable
Furniture and Equipment 33000 400 Utilities payable
Prepaid insurance 1600 21000 Sales revenue
office supplies 2200
Account receivable 10200
utilities expense 400
Total Debits 83600 = 83600 Total credits
