We read your photo as:

Calculate the account balances and prepare a trial balance on October 7, 20--.

Accounting

ScanSolve AI Answer

Step-by-step solution

2 steps

Here are the T-accounts for M. L. Cheung Real Estate and the trial balance as of June 5.

  1. Analyze and post each transaction to the respective T-accounts.

    Cash

    DebitCreditJun 1 (Initial Inv.)100,000Jun 1 (Building)70,000Jun 5 (Add. Inv.)5,000Jun 2 (Furniture)5,000Jun 3 (A/P)2,800Bal. Jun 527,200\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline \text{Jun 1 (Initial Inv.)} \quad 100,000 & \text{Jun 1 (Building)} \quad 70,000 \\ \text{Jun 5 (Add. Inv.)} \quad 5,000 & \text{Jun 2 (Furniture)} \quad 5,000 \\ & \text{Jun 3 (A/P)} \quad 2,800 \\ \hline \textbf{Bal. Jun 5} \quad \mathbf{27,200} & \\ \hline \end{array}

    Land

    DebitCreditJun 1 (Building)60,000Bal. Jun 560,000\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline \text{Jun 1 (Building)} \quad 60,000 & \\ \hline \textbf{Bal. Jun 5} \quad \mathbf{60,000} & \\ \hline \end{array}

    Building

    DebitCreditJun 1 (Purchase)200,000Bal. Jun 5200,000\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline \text{Jun 1 (Purchase)} \quad 200,000 & \\ \hline \textbf{Bal. Jun 5} \quad \mathbf{200,000} & \\ \hline \end{array}

    Furniture

    DebitCreditJun 2 (Purchase)7,800Bal. Jun 57,800\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline \text{Jun 2 (Purchase)} \quad 7,800 & \\ \hline \textbf{Bal. Jun 5} \quad \mathbf{7,800} & \\ \hline \end{array}

    Office Equipment

    DebitCreditJun 3 (Purchase)5,600Bal. Jun 55,600\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline \text{Jun 3 (Purchase)} \quad 5,600 & \\ \hline \textbf{Bal. Jun 5} \quad \mathbf{5,600} & \\ \hline \end{array}

    Accounts Payable

    DebitCreditJun 3 (Cash)2,800Jun 2 (Furniture)2,800Jun 3 (Office Equip.)5,600Bal. Jun 55,600\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline \text{Jun 3 (Cash)} \quad 2,800 & \text{Jun 2 (Furniture)} \quad 2,800 \\ & \text{Jun 3 (Office Equip.)} \quad 5,600 \\ \hline & \textbf{Bal. Jun 5} \quad \mathbf{5,600} \\ \hline \end{array}

    Mortgage Payable

    DebitCreditJun 1 (Building)190,000Bal. Jun 5190,000\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline & \text{Jun 1 (Building)} \quad 190,000 \\ \hline & \textbf{Bal. Jun 5} \quad \mathbf{190,000} \\ \hline \end{array}

    M. L. Cheung, Capital

    DebitCreditJun 1 (Initial Inv.)100,000Jun 5 (Add. Inv.)5,000Bal. Jun 5105,000\begin{array}{c|c} \hline \textbf{Debit} & \textbf{Credit} \\ \hline & \text{Jun 1 (Initial Inv.)} \quad 100,000 \\ & \text{Jun 5 (Add. Inv.)} \quad 5,000 \\ \hline & \textbf{Bal. Jun 5} \quad \mathbf{105,000} \\ \hline \end{array}

  2. Prepare the Trial Balance as of June 5.

    \multicolumn3cM. L. Cheung Real Estate\multicolumn3cTrial Balance\multicolumn3cAs of June 5AccountDebit ($)Credit ($)Cash27,200Land60,000Building200,000Furniture7,800Office Equipment5,600Accounts Payable5,600Mortgage Payable190,000M. L. Cheung, Capital105,000Total300,600300,600\begin{array}{lrr} \multicolumn{3}{c}{\textbf{M. L. Cheung Real Estate}} \\ \multicolumn{3}{c}{\textbf{Trial Balance}} \\ \multicolumn{3}{c}{\textbf{As of June 5}} \\ \hline \textbf{Account} & \textbf{Debit (\$)} & \textbf{Credit (\$)} \\ \hline \text{Cash} & 27,200 & \\ \text{Land} & 60,000 & \\ \text{Building} & 200,000 & \\ \text{Furniture} & 7,800 & \\ \text{Office Equipment} & 5,600 & \\ \text{Accounts Payable} & & 5,600 \\ \text{Mortgage Payable} & & 190,000 \\ \text{M. L. Cheung, Capital} & & 105,000 \\ \hline \textbf{Total} & \mathbf{300,600} & \mathbf{300,600} \\ \hline \end{array}
Was this helpful?

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question

More Accounting Questions

QPrepare the trial balanceQEnter the above transactions in various ledger accounts and prepare a trial balance.QPrepare the Post-Adjustment Trial Balance.QPrepare the trial balance by using those ledger accountsQPrepare the Contract Account for the period ended October 31st, 2009.
See all Accounting questions →
Got a syllabus? Photograph it and I'll tell you what's due and what's worth the most.
Handwritten step-by-step solution preview

Handwritten Step-by-Step Solution

Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.

Try on WhatsApp