Exercise 1

Make an unadjusted trial balance with the following data:

Account Balance

Accounts receivable 119,000

Prepaid insurance 20,500

Materials (supplies) 3,850

Cash ?

Equipment 35,000

Accounts payable 45,000

Notes payable 42,800

Juan del Pueblo, capital 69,000

Juan del Pueblo, retreats (drawings) 20,000

Fee earned 835,000

Utilities expense 24,500

Salaries expense 620,000

Advertising expense 3,500

Rent expense 45,000

Exercise 2

Identify errors in the following trial balance based on the data presented.

Tu Terruo Restaurant

Checking balance

At the end of March 2020

Account Debit Credit

Cash 584,000

Accounts receivable 210,000

Equipment 140,000

Materials (supplies) 18,000

Accounts payable 43,000

Juan Romn, capital 632,000

Fee earned

Rent expense 20,000

Salary expense 280,000

Total 1,320,000 1,320,000

Exercise 3

Camino al Mar, a wedding coordination business, started on March 1, 2020. Use the information provided to complete the exercise.

a. Record the following transactions in the journal.

b. Records the move to the ledger.

c. Prepare the trial balance.

Date Transaction

March 1 $ 12,000 in cash was invested to start the business.

3 Purchased business vehicle for $ 13,000 on credit.

3 Decorating materials were purchased for a total of $ 4,500.

4 Prepaid insurance policy for $ 1,000 was paid for effective March 1.

5 A service was performed to a customer (fee earned) in the amount of $ 2,500.

10 A credit was paid to the purchased vehicle of $ 600.

15 Employees were paid wages of $ 1,650.

16 A wedding decoration was made on credit for $ 3,000.

18 A decoration was made for a 15-year-old in cash for $ 2,800.

20 Client for whom work was performed on March 16 paid $ 1,100.

21 $ 70 was paid for gasoline for the business vehicle.

22 Decorated for a bachelorette party for $ 1,000.

25 $ 30 was paid for gas for the business vehicle.

28 $ 700 was paid for advertising expenses.

29 A withdrawal was made for personal use in the amount of $ 300.

30 Employees paid wages of $ 1,650