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    BookWorm's Avatar
    BookWorm Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 1, 2006, 05:40 AM
    Accounting
    I have this trial balance to create and here is the information:

    Aug 1 owner investment $7,500 cash and $32,500 of equipment in business
    Aug 1 paid $3,000 for insurance policy for 24 months
    Aug 5 purchased office supplies for $1,400 cash
    Aug 20 received $2,650 cash in fees earned
    Aug 31 paid $875 cash for Aug. utilites

    The issue is that when I create the trial balance both sides do not equal each other. Can someone tell me what I am doing wrong?

    Here is what I did...
    Debit Credit
    Cash 7,500
    Accounts Receivable 2,650
    Supplies 1,400
    Prepaid Insurance 3,000
    Equipment 32,500
    Utilities Expense 875





    Totals 42,650 5275
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Oct 1, 2006, 06:20 PM
    What you need to do is break down EACH transactions, write out the Journal Entry.

    And remember, for each journal entry, debits MUST EQUAL credits.

    Then, simply put all your accounts on to your trial balance.

    Post back on what you think the journal entries are for each of the 5 transactions, and someone will look it over for you and provide you with some more assistance.
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