Chap 18

How many expenses are listed in the Trial balance as at June 2023

• 5

• 8

• 6

• 4

Distinguish between a trial balance and adjusted trial balance

Answer explanation

A trial balance shows al debit and credi entries in the general ledger accounts. It is used to identify any errors in the recording process. Whereas an adjusted trial balance is pre pared after all balance day adjustments have been recorded.

The adjustments for supreme trading are:

- Annual insurance expenses of $

• 100

• 2000

• 2500

• 1000

- Inventory loss of

• 55000

• 54600

• 400

• 500

- Bad debt write off of $1000

- allowance for doubtful debts to increase by $

• 200

• 1000

• 1200

• 500

-______ advertising of $300

• Prepaid

• Accrued

• Expense

• Unearned

Depreciation of office furniture of $

• 300

• 36

• 360

• 3600

The adjusting entry for insurance incurred effects the accounting equation by:

• Increase assets $2000

  Decrease OE $2000

• Decrease assets $2000

  Increase OE $2000

• Decrease assets $2000

  Decrease OE $2000

The balance for inventory in the adjusted trial balance will be:

• 400

• 55400

• 55000

• 54 600

What is the balance of the P and L summary account?

• 0

• 8 560