Based upon the data presented in Exercise 2-13, (a) prepare an unadjusted trial balance, listing the accounts in their proper order. (b) Based upon the unadjusted trial balance, determine the net income or net loss.

Data from Exercise 2-13:

Southwest Tours Co. is a travel agency. The nine transactions recorded by Southwest Tours during May 2012, its first month of operations, are indicated in the following T accounts:

Indicate for each debit and each credit: (a) whether an asset, liability, stockholders’ equity, dividend, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased (–). Present your answers in the following form, with transaction (1) given as an example:

Transcribed Image Text:

Cash Dividends Equipment 18,000 (9) (1) 40,000 (2) 10,000 (3) 2,000 (3) 4,000 (7) 3,600 (4) 2,700 (6) 9,000 (9) 4,000 Accounts Receivable 18,500 (7) Accounts Payable Service Revenue (5) (5) 10,000 (6) 9,000 (3) 14,400 18,500 Supplies 2,000 (8) Capital Stock Operating Expenses (2) 1,050 (1) 40,000 (4) 2,700 (8) 1,050