Question
Louis Ruiz Consulting Services has five accounts in its initial trial balance: Cash, Accounts Payable, Ruiz Capital, Telephone Expenses and Consulting Revenue. Using the chart
Louis Ruiz Consulting Services has five accounts in its initial trial balance: Cash, Accounts Payable, Ruiz Capital, Telephone Expenses and Consulting Revenue. Using the chart for making journal entries, which account is listed fourth in the trial balance for the consulting services business?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The order of accounts in a trial balance typically follows the accounting equation Assets Liabilities Equity Lets break down the accounts you mentioned 1 Cash This is an asset and is usually listed first in the trial balance 2 Accounts Payable This is a liability and is typically listed after assets 3 Ruiz Capital Assuming this represents owners equity it follows liabilities 4 Telephone Expenses This is an expense account and usually comes after equity 5 Consulting Revenue This is a revenue account and is often the last in the trial balance So based on the information provided the account ...
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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
