Trial Balance Exercise 1

James Darmody is the owner of Bootlegger Trader, a business that sells alcoholic beverages. The following is his business’ trial balance at 31st December 2014:

Trial Balance for the 12 months ended on 31st December 2014AccountsMortgage loanSalesCarriage inwardsBad DebtCapitalInventoryDrawingsOffice expenseDebtorsUtility expenseOffice BuildingCost of Goods SoldSales wagesSales returnCreditor Advertising expenseCashOffice equipmentInterest expensePrepaid rent revenueAccrued Interest Revenue

$

1100900

6950240030004760560

592004465064601030

2900

166001750

800

$2005064000

55800

8400

1810

3000

Additional information occuring on 31 st December 1) The business earned service revenue $1800 but has not received it.2) It also received $4000 of consultation revenue, although it has not provided any services so far.3) It has earned $500 of rent (per month) for the last 6 months.4) It received $800 of the interest revenue owed from a borrower.

Requirements1) Adjust the trial balance based on the additional information.2) Prepare a P&L statement and Balance Sheet based on the adjusted trial balance.