Let's prepare a trial balance for Cobras Incorporated at the end of March, listing the accounts in the order of assets, liabilities, stockholders' equity, revenues, and expenses.
### Step-by-Step Solution:
1. List the balances for each account type.
Assets:
- Supplies: [tex]$1,000
- Buildings: $[/tex]39,000
- Prepaid Insurance: [tex]$1,200
- Accounts Receivable: $[/tex]2,600
- Cash: [tex]$1,900
Liabilities:
- Salaries Payable: $[/tex]500
- Accounts Payable: [tex]$1,400
Stockholders' Equity:
- Common Stock: $[/tex]19,000
- Retained Earnings: [tex]$13,800
Revenues:
- Service Revenue: $[/tex]17,900
Expenses:
- Utilities Expense: [tex]$2,100
- Salaries Expense: $[/tex]4,800
2. Sum the balances for each group.
Total Assets:
[tex]\[
1,000 + 39,000 + 1,200 + 2,600 + 1,900 = 45,700
\][/tex]
Total Liabilities:
[tex]\[
500 + 1,400 = 1,900
\][/tex]
Total Stockholders' Equity:
[tex]\[
19,000 + 13,800 = 32,800
\][/tex]
Total Revenues:
[tex]\[
17,900
\][/tex]
Total Expenses:
[tex]\[
2,100 + 4,800 = 6,900
\][/tex]
3. Prepare the trial balance.
| Account | Debit | Credit |
|------------------------|--------|---------|
| Assets | | |
| Supplies | 1,000 | |
| Buildings | 39,000 | |
| Prepaid Insurance | 1,200 | |
| Accounts Receivable | 2,600 | |
| Cash | 1,900 | |
| Total Assets | 45,700 | |
| | | |
| Liabilities | | |
| Salaries Payable | | 500 |
| Accounts Payable | | 1,400 |
| Total Liabilities | | 1,900 |
| | | |
| Stockholders' Equity| | |
| Common Stock | | 19,000 |
| Retained Earnings | | 13,800 |
| Total Stockholders' Equity| | 32,800 |
| | | |
| Revenues | | |
| Service Revenue | | 17,900 |
| Total Revenues | | 17,900 |
| | | |
| Expenses | | |
| Utilities Expense | 2,100 | |
| Salaries Expense | 4,800 | |
| Total Expenses | 6,900 | |
4. Verify that debits equal credits:
Total Debits:
[tex]\[
45,700 (Assets) + 6,900 (Expenses) = 52,600
\][/tex]
Total Credits:
[tex]\[
1,900 (Liabilities) + 32,800 (Stockholders' Equity) + 17,900 (Revenues) = 52,600
\][/tex]
Since the total debits equal the total credits, the trial balance is correctly prepared.
Trial Balance Summary:
| Category | Total Amount |
|---------------------------|--------------|
| Assets Total | [tex]$45,700 |
| Liabilities Total | $[/tex]1,900 |
| Stockholders' Equity Total | [tex]$32,800 |
| Revenues Total | $[/tex]17,900 |
| Expenses Total | $6,900 |
This concludes the preparation of the trial balance for Cobras Incorporated.
