Test III - Trial Balance

The following are the transactions of Shehgarlynn Repair Service. Journalize the following transactions in proper form. The chart of accounts includes: Cash and Bank; Prepaid Rent; Supplies; Repair  Equipment; Accounts Payable; Accounts Receivable; Shehla, Capital; Shehla, Withdrawal; Repair Fees Earned; Salaries Expense; Advertising Expense; and Supplies Expense.


January 1, 2013, Shehla invested $15,000 cash and $5,000 of repair equipment in the business. (The cash deposit to Bank of America checking account No.0013447)

January 1, 2013, Paid twelve (12) month's rent in advance, $500 per month. check no. 001

January 5, 2013, Bought repair supplies from Arden Co. on account, amounting of $500. (These  supplies have not yet been consumed or used up).

January 10, 2013, Perform repair work, received $750 cash, and had to bill Gary Co. for remaining  balance of $250. (cash was deposited to the Bank of America)

January 18, 2013, Shehla paid her home telephone bill, amounting of $120, check no. 002

January 20, 2013, Advertising bill for $500 from Jerry Co. received but payment not due yet.   (advertising has already appeared in the newspaper).

January 24, 2013, Paid salary to Shehla as a manager of the company, amounting of $5,000, check no. 003

January 30, 2013, Paid insurance for 1 year in advance, $100 per month. check no. 004.



After posting the account to each debit or credit ledger account. Prepare the Trial Balance.

Trial Balance

A record prepared at any moment in time to prove the accuracy of the ledger. If the totals of the debit and credit balances in the individual ledger accounts agree, the ledger is said to be in balance.

In preparing trial balance, all the accounts from the ledger post to or consist of a listing of accounts balances in two columns labeled debit and credit. Make sure the debit account equal to credit account.

There are four steps to prepare a trial balance:

1. Determine the balance of each account in the ledger
2. List the accounts and their balances with the debit balances in one column and the credit balance in another.
3. Total the debit balances and then total the credit balances.
4. Compare the sums of the debit and credit balances to see if they are equal.

Trial Balance

The following are the account of Shehgarlynn Law firm for the first quarter of business operation:

Cash ....................................$1,000
Checking Account................24,150
Supplies.....................................650
Prepaid Rent...........................4,800
Office Furniture......................3,500
Office Equipment...................4,000
Accounts Payable....................1,950
Unearned Revenue...............10,000
Shehgarlynn, Capital.............21,500
Shehgarlynn, Drawing............... 800
Consulting Fees ......................8,900
Rent Expense............................400
Advertising Expense..................200
Supplies Expense ...................2,100
Utilities Expense.......................400
Miscellaneous Expense..............350

Prepare the following:

1. Trial Balance
2. Income Statement
3. Statement of Owner's Equity
4. Balance Sheet (Report Form)