To prepare the trial balance, we list all the accounts and their final balances after the transactions. The accounts are listed in alphabetical order as requested:

Account name | Debit ($) | Credit ($)
--- | --- | ---
Accounts payable | | 42,700
Cash | 231,100 |
Inventory | 58,000 |
Loan payable | | 143,800
Machinery | 220,200 |
Service Revenue | | 50,200
Share capital | | 293,800
Wages Expense | 21,200 |

Now, we need to ensure that the total of the debit balances equals the total of the credit balances. This is a fundamental principle of double-entry bookkeeping, which ensures that the accounts are balanced.

Total Debits = 231,100 (Cash) + 58,000 (Inventory) + 220,200 (Machinery) + 21,200 (Wages Expense) = 530,500

Total Credits = 42,700 (Accounts payable) + 143,800 (Loan payable) + 50,200 (Service Revenue) + 293,800 (Share capital) = 530,500

As the total debits equal the total credits, the trial balance is balanced.

Question

To prepare the trial balance, we list all the accounts and their final balances after the transactions. The accounts are listed in alphabetical order as requested:

Account name | Debit ($) | Credit ($)
--- | --- | ---
Accounts payable |  | 42,700
Cash | 231,100 | 
Inventory | 58,000 | 
Loan payable |  | 143,800
Machinery | 220,200 | 
Service Revenue |  | 50,200
Share capital |  | 293,800
Wages Expense | 21,200 |

Now, we need to ensure that the total of the debit balances equals the total of the credit balances. This is a fundamental principle of double-entry bookkeeping, which ensures that the accounts are balanced.

Total Debits = 231,100 (Cash) + 58,000 (Inventory) + 220,200 (Machinery) + 21,200 (Wages Expense) = 530,500

Total Credits = 42,700 (Accounts payable) + 143,800 (Loan payable) + 50,200 (Service Revenue) + 293,800 (Share capital) = 530,500

As the total debits equal the total credits, the trial balance is balanced.

Knowee AI · Accepted Answer

To prepare the trial balance, we list all the accounts and their final balances after the transactions. The accounts are listed in alphabetical order as requested:

Account name | Debit ($) | Credit ($)
--- | --- | ---
Accounts payable |  | 42,700
Cash | 231,100 | 
Inventory | 58,000 | 
Loan payable |  | 143,800
Machinery | 220,200 | 
Service Revenue |  | 50,200
Share capital |  | 293,800
Wages Expense | 21,200 |

Now, we need to ensure that the total of the debit balances equals the total of the credit balances. This is a fundamental principle of double-entry bookkeeping, which ensures that the accounts are balanced.

Total Debits = 231,100 (Cash) + 58,000 (Inventory) + 220,200 (Machinery) + 21,200 (Wages Expense) = 530,500

Total Credits = 42,700 (Accounts payable) + 143,800 (Loan payable) + 50,200 (Service Revenue) + 293,800 (Share capital) = 530,500

As the total debits equal the total credits, the trial balance is balanced.

(b) Prepare the trial balance after the effects of the above transactions were recorded. List the accounts involved in alphabetical order.

Question

(b) Prepare the trial balance after the effects of the above transactions were recorded. List the accounts involved in alphabetical order.

Solution

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Account name	Debit ($)	Credit ($)
Accounts payable		42,700
Cash	231,100
Inventory	58,000
Loan payable		143,800
Machinery	220,200
Service Revenue		50,200
Share capital		293,800
Wages Expense	21,200