Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 611

Financial Statements

Lesson 18.7 Review of the Accounting Cycle:

Putting it all Together (cont’d)

Step 4 of the accounting cycle: You posted adjusting entries, including depreciation, correcting entries,

etc., and prepared the trial balance.

Mrs. King’s Interiors Trial Balance

Period ending – December 31, 20YY

Beginning

Balance

$0.00

Date

General

Ledger

Account

Description of Transaction Debit Credit Balance

1 12/31/20YY 110 Cash $30,550.00 $30,550.00

2 12/31/20YY 120 Accounts Receivable $2,500.00 $33,050.00

3 12/31/20YY 130 Supplies $10,650.00 $43,700.00

4 12/31/20YY 131 Less: Accumulated Depreciation $360.00 $43,340.00

5 12/31/20YY 210 Accounts Payable, Furniture World $6,500.00 $36,840.00

6 12/31/20YY 310 Capital, Mrs. King $30,500.00 $6,340.00

7 12/31/20YY 320 Owner’s Draw, Mrs. King $600.00 $6,940.00

8 12/31/20YY 410 Revenue, Design Services $8,000.00 -$1,060.00

9 12/31/20YY 510 Rent Expense $500.00 -$560.00

10 12/31/20YY 520 Utility Expense $200.00 -$360.00

11 12/31/20YY 530 Depreciation Expense $360.00 $0.00

Total $45,360.00 $45,360.00 $0.00

Chapter 18

Student Guide