Chapter 2, Problem 18AE

Balancing accounts and preparing a trial balance (Learning Objectives 3 & 4) 10-15 min.

The transactions for Zane’s Creations, Inc., for the month of January 2018 are posted in the following T-accounts:

	Cash		111
Jan 1	45,000	Jan 2	1,400
6	1,250	4	6,000
23	2,700	9	400
		15	900
		26	4,800
		28	425
		29	1,150
Bal

	Accounts Receivable		112
Jan 17	5,200	Jan 23	2,700
Bal

	Supplies		113
Jan 3	750
Bal

	Equipment			115
Jan 4	6,000
26	4,800
Bal

	Accounts Payable		211
Jan 9	400	Jan 3	750
		Bal

	Common Stock		311
		Jan 1		45,000
		Bal

	Service Revenue		411
		Jan 6	1,250
		17	5,200
		Bal

	Salaries Expense			512
Jan 15		900
29		1,150
Bal

	Rent Expense		504
Jan 2	1,400
Bal

	Utilities Expense		530
Jan 28	425
Bal

Requirements

1. 1. Calculate account balances at January 31, 2018.
2. 2. Prepare the trial balance for Zane’s Creations, Inc., at January 31, 2018.

Quick solution:

1. 1. Cash balance = $33,875
2. 2. Trial balance total = $51,800