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    Blackwellz's Avatar
    Blackwellz Posts: 1, Reputation: 1
    New Member

    Nov 23, 2009, 08:09 PM
    Prepare a corrected trial balance in good form.
    Maryville Online Company
    Trial Balance
    March 31, 200x

    Salaries Expense 600
    Rent Expense 200
    Accounts Receivable 600
    Equipment 2,000
    K. Jacobson, Capital 2,300
    K. Jacobson, Withdrawals 100
    Service Fees 1,000
    Accounts Payable 700
    Cash 500

    5,000 3,000
    Net profit 2,000

    5,000 5,000

    Question: Just wanted to see if I correctly placed each category in the appropriate area. I looked at other examples and they did not have the Net profit so I do not know if this a correct trial balance form
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member

    Nov 23, 2009, 11:15 PM

    I think the mistake lies in reporting service fees. It appears that you have taken the amount as a debit whereas it may be a credit balance. If you correct this entry, the trial balance will balance.

    Net profit does not enter the trial balance until the accounts are closed.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member

    Nov 27, 2009, 12:33 AM
    Please note that the columns do not show up when you post. I actually didn't get what you were doing... we can see the columns only if we "quote" you and then it still only shows in the little screen we type in and not on the post. (That was the only way I could see what rehmanvohra was talking about with the revenue.)

    A couple of added comments:

    One, that difference you have is not net profit. Net profit is the difference between revenues and expenses. Your trial balance is out of balance by 2000 - that is not net profit. It's not supposed to be that way. It should balance.

    Two, if you want it "in good form" then put the accounts in proper order: assets, liabilities, equity, revenue, expense. These accounts are in random order with no real meaning.

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