The following transactions have been journalized and posted to the proper accounts. Prepare a trial balance at the end of the first month using the following details:

Question

a) Received $15,000 cash and issued common stock

b) Paid the first month's rent with $800 cash.
c) Purchased equipment by paying $4,000 cash and executing a note payable for $4,000.
d) Purchased office supplies for $200 cash. The supplies remain at the end of the month.
e) Billed clients for a total of $7,000 for design services rendered.
f) Received $1,000 cash from clients for services rendered above.
What will be an ideal response

Answer 1

Account Title Debit Credit
Cash $11,000
Accounts Receivable 6,000
Office Supplies 200
Equipment 8,000
Notes Payable $4,000
Common Stock 15,000
Service Revenue 7,000
Rent Expense 800 ______
Total $26,000 $26,000 .Note:
Cash balance is calculated as:

Common stock issued $15,000
Rent paid (800 )
Cash paid for equipment (4,000 )
Office supplies purchased (200 )
Cash received from clients 1,000
Cash balance $11,000