Reference no: EM132754656

UNADJUSTED TRIAL BALANCE

Entity A started operations during the period. The following were the transactions:

a. Mr. A, the sole owner of Entity A, invested ?1,000,000 to the business.

b. Equipment costing ?250,000 was acquired for cash.

c. Inventory costing ?180,000 was acquired on credit. Entity A uses the perpetual inventory system.

d. Inventory costing ?120,000 was sold for ?400,000 on credit.

e. Accounts payable of ?160,000 was settled.

f. Accounts receivable of ?340,000 was collected.

g. Utilities expense of ?60,000 was paid.

h. Salaries expense of ?280,000 was paid.

i. Owner's drawings during the period totaled ?70,000.

j. Depreciation expense on the equipment for the period was ?25,000.

Requirements:

Problem a. Journalize the transactions above. Be sure to provide a brief description for each journal entry.

Problem b. Post the transactions to the general ledger. Use T-accounts for this purpose. Arrange your T- accounts in the following order: Assets, Liabilities, Equity, Income and Expenses.

Problem c. Prepare the unadjusted trial balance of Entity A on December 31, 20x1. Be sure to provide a proper heading for the trial balance.