Requirement 2. Prepare an unadjusted trial balance. (Exclude any accounts with a zero balance from the trial balance.)

Review the T-accounts you prepared in Requirement 1.

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Wendson's Quality Automotive
Unadjusted Trial Balance
December 31, 2018
		Balance
	Account Title	Debit	Credit
	Cash	49,420
	Wendson, Capital
	Equipment
	Prepaid Insurance
	Land
	Office Supplies
	Notes Payable
	Advertising Expense
	Utilities Expense
	Total

WendsonWendson

contributed

$ 52 comma 000$52,000

cash to the business in exchange for capital.

1

Purchased

$ 15 comma 000$15,000

of equipment paying cash.

1

Paid

$ 4 comma 500$4,500

for a

tenten-month

insurance policy starting on

DecemberDecember

1.

9

Paid

$ 24 comma 000$24,000

cash to purchase land to be used in operations.

10

Purchased office supplies on account,

$ 1 comma 700$1,700.

19

Borrowed

$ 35 comma 000$35,000

from the bank for business use.

WendsonWendson

signed a note payable to the bank in the name of the business. The note is due in five years.

22

Paid

$ 2 comma 000$2,000

for advertising expenses.

26

Paid

$ 1 comma 400$1,400

on account.

28

The business received a bill for utilities to be paid in

JanuaryJanuary,

$ 260$260.

3131

Revenues earned during the month included

$ 17 comma 000$17,000

cash and

$ 3 comma 700$3,700

on account.

3131

Paid employees' salaries

$ 3 comma 200$3,200

and building rent

$ 1 comma 700$1,700.

Record as a compound entry.

3131

The business received

$ 1 comma 220$1,220

for auto screening services to be performed next month.

3131

WendsonWendson

withdrew cash of

$ 4 comma 000$4,000.