The following is an alphabetical list of accounts and balances for the J. Nikko proprietorship at November 30, 2024:

Instructions

a. Prepare a trial balance at November 30, sorting each account into the debit or the credit column.

b. Prepare an income statement for the year.

c. Prepare a statement of owner’s equity for the year.

d. Prepare a balance sheet.

Taking It Further

J. Nikko believes that accounting would be more efficient if transactions were recorded directly in the ledger accounts. Explain to him the advantages of first recording transactions in the journal, and then posting them to the ledger.

Transcribed Image Text:

Accounts Payable Accounts Receivable Cash Equipment Interest Expense J. Nikko, Capital J. Nikko, Drawings Land $12,500 10,250 8,000 18,250 500 28,000 12,000 64,000 Notes Payable Prepaid Expenses Rent Expense Salaries Expense Service Revenue Supplies Utilities Expense $30,000 3,000 4,500 7,500 63,050 5,000 550