The totals of T accounts are called footings. To figure out the account balance, subtract the total
Question:
The totals of T accounts are called footings. To figure out the account balance, subtract the total of the smaller side from the total of the larger side. Record the account balance on the larger side.
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LO5
A trial balance is a list of all account balances in two columns—one labeled “Debit” and one labeled “Credit.” The trial balance shows that both sides of the accounting equation are equal. The heading consists of the company name, the title of the form (trial balance), and the date.
Using the following account balances, prepare a trial balance for Pat Martin’s Music Entertainment as of May 31, 20__.
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List all the accounts in the proper order as described in the textbook. If an amount box does not require an entry, leave it blank or enter "0".
| Pat Martin's Music Entertainment | ||
| Trial Balance | ||
| May 31, 20-- | ||
| Account | Debit Balance | Credit Balance |
| $ | $ | |
| Totals | $ | $ |
LO6
Financial Statements include: (a) An income statement shows the results of operations of a business for a period of time. It includes revenue and expense accounts and reports either a net income or a net loss. (b) A statement of owner's equity shows the activity in the owner's equity, or Capital account, for a period of time. It includes the balance in the Capital account at the beginning of the period plus any additional investments and any increase or decrease in capital as the result of a net income (or a net loss) minus any withdrawals. (c) A balance sheet shows the financial condition of a business at a particular date in time. It summarizes the balances of the asset, liability, and owner's equity accounts on a given date.
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Using the above account balances, prepare an Income Statement for Pat Martin's Music Entertainment as of May 31, 20__.
| Pat Martin's Music Entertainment | ||
| Income Statement | ||
| May 31, 20-- | ||
| Revenues | ||
| $ | ||
| Expenses | ||
| $ | ||
| Total Expenses | ||
| $ | ||
Using the above account balances, prepare a Statement of Owner’s Equity for Pat Martin’s Music Entertainment as of May 31, 20__. If an amount is zero, enter "0".
| Pat Martin's Music Entertainment | ||
| Statement of Owner's Equity | ||
| May 31, 20-- | ||
| $ | ||
| $ | ||
| Subtotal | $ | |
| $ | ||
Using the above account balances, prepare a Balance Sheet for Pat Martin’s Music Entertainment as of May 31, 20__.
| Pat Martin's Music Entertainment | ||
| Balance Sheet | ||
| May 31, 20-- | ||
| Assets | ||
| $ | ||
| Total Assets | $ | |
| Liabilities | ||
| $ | ||
| Owner's Equity | ||
| Total Liabilities and Owner's Equity | $ | |
Expert Answer:
