To prepare a trial balance for Cobras Incorporated as of March 31, we'll list all the accounts in the specified order: assets, liabilities, stockholders' equity, revenues, and expenses. Here is the step-by-step detailed solution:
1. List all accounts and their balances. We will start by categorizing each account based on its type (asset, liability, stockholders' equity, revenue, or expense) and whether it has a debit or credit balance.
- Assets (debit balances):
- Supplies: [tex]$1,200
- Buildings: $[/tex]51,000
- Prepaid Insurance: [tex]$1,300
- Accounts Receivable: $[/tex]3,800
- Cash: [tex]$3,100
- Liabilities (credit balances):
- Salaries Payable: $[/tex]400
- Accounts Payable: [tex]$2,000
- Stockholders' Equity (credit balances):
- Common Stock: $[/tex]31,000
- Retained Earnings: [tex]$17,200
- Revenues (credit balances):
- Service Revenue: $[/tex]19,100
- Expenses (debit balances):
- Utilities Expense: [tex]$3,300
- Salaries Expense: $[/tex]6,000
2. Create the trial balance table. We will list each account and its debit or credit balance, followed by the calculation of the totals.
[tex]\[
\begin{array}{|c|c|c|c|}
\hline
\multicolumn{4}{|c|}{ COBRAS INCORPORATED } \\
\hline
\multicolumn{4}{|c|}{ Trial Balance } \\
\hline
\multicolumn{4}{|c|}{ March 31} \\
\hline
\# & \text{Accounts} & \text{Debit} & \text{Credit} \\
\hline & & & \\
\hline 1 & \text{Supplies} & \$1,200 & \$0 \\
\hline 2 & \text{Buildings} & \$51,000 & \$0 \\
\hline 3 & \text{Accounts Receivable} & \$3,800 & \$0 \\
\hline 4 & \text{Cash} & \$3,100 & \$0 \\
\hline 5 & \text{ Prepaid Insurance} & \$1,300 & \$0 \\
\hline 6 & \text{Salaries Payable} & \$0 & \$400 \\
\hline 7 & \text{Accounts Payable} & \$0 & \$2,000 \\
\hline 8 & \text{Common Stock} & \$0 & \$31,000 \\
\hline 9 & \text{Retained Earnings} & \$0 & \$17,200 \\
\hline 10 & \text{Service Revenue} & \$0 & \$19,100 \\
\hline 11 & \text{Utilities Expense} & \$3,300 & \$0 \\
\hline 12 & \text{Salaries Expense} & \$6,000 & \$0 \\
\hline & & & \\
\hline & \text{Totals} & \$69,700 & \$69,700 \\
\hline
\end{array}
\][/tex]
As you can see, we list all the accounts and their respective debit or credit balances. Finally, we ensure that the total debits equal the total credits, which is [tex]$\$[/tex]69,700[tex]$ in this case. This matching of totals is crucial to verify that the accounts are balanced.
In summary, we have:
- Total Debits: \$[/tex]69,700
- Total Credits: \$69,700
These steps confirm that the accounts are correctly balanced, and our trial balance is complete.
