LO1

The totals of T accounts are called footings. To figure out the account balance, subtract the total of the smaller side from the total of the larger side. Record the account balance on the larger side.

Cash

Accounts Payable

	+
	Debit		Credit
(a)	12,000	(b)	700
		(e)	1,100
		(g)	175
(h)	1,050
Bal.

			+
	Debit		Credit
(c)	750	(d)	3,250
		Bal.

Rent Expense

Accounts Receivable

	+
	Debit		Credit
(b)	700
Bal.

	+
	Debit		Credit
(f)	1,240	(h)	1,050
Bal.

P. Martin, Capital

Supplies

			+
	Debit		Credit
		(a)	12,000
		(f)	1,240
		Bal.

	+
	Debit		Credit
(g)	175
Bal.

P. Martin, Drawing

Office Equipment

	+
	Debit		Credit
(e)	1,100
Bal.

	+
	Debit		Credit
(d)	3,250	(c)	750
Bal.

LO5

A trial balance is a list of all account balances in two columnsone labeled Debit and one labeled Credit. The trial balance shows that both sides of the accounting equation are equal. The heading consists of the company name, the title of the form (trial balance), and the date.

Using the following account balances, prepare a trial balance for Pat Martins Music Entertainment as of May 31, 20__.

Asset
Cash	$ 22,035
Accounts Receivable	325
Supplies	500
Music Equipment	2,685
Liabilities
Accounts Payable	1,050
Owners Equity
P. Martin, Capital	22,230
P. Martin, Drawing	1,000

Revenue
Music Fees	$5,925
Expenses
Advertising Expense	750
Rent Expense	1,250
Wages Expense	525
Utilities Expense	135

List all the accounts in the proper order as described in the textbook. If an amount box does not require an entry, leave it blank or enter "0".

Pat Martin's Music Entertainment
Trial Balance
May 31, 20--
Account	Debit Balance	Credit Balance
	$	$
Totals	$	$

LO6

Financial Statements include: (a) An income statement shows the results of operations of a business for a period of time. It includes revenue and expense accounts and reports either a net income or a net loss. (b) A statement of owner's equity shows the activity in the owner's equity, or Capital account, for a period of time. It includes the balance in the Capital account at the beginning of the period plus any additional investments and any increase or decrease in capital as the result of a net income (or a net loss) minus any withdrawals. (c) A balance sheet shows the financial condition of a business at a particular date in time. It summarizes the balances of the asset, liability, and owner's equity accounts on a given date.

Asset
Cash	$ 22,035
Accounts Receivable	325
Supplies	500
Music Equipment	2,685
Liabilities
Accounts Payable	1,050
Owners Equity
P. Martin, Capital	22,230
P. Martin, Drawing	1,000

Revenue
Music Fees	$5,925
Expenses
Advertising Expense	750
Rent Expense	1,250
Wages Expense	525
Utilities Expense	135

Using the above account balances, prepare an Income Statement for Pat Martin's Music Entertainment as of May 31, 20__.

Pat Martin's Music Entertainment
Income Statement
May 31, 20--
Revenues
		$
Expenses
	$
Total Expenses
		$

Using the above account balances, prepare a Statement of Owners Equity for Pat Martins Music Entertainment as of May 31, 20__. If an amount is zero, enter "0".

Pat Martin's Music Entertainment
Statement of Owner's Equity
May 31, 20--
		$
	$
Subtotal	$
		$

Using the above account balances, prepare a Balance Sheet for Pat Martins Music Entertainment as of May 31, 20__.

Pat Martin's Music Entertainment
Balance Sheet
May 31, 20--
Assets
	$
Total Assets		$
Liabilities
		$
Owner's Equity
Total Liabilities and Owner's Equity		$