Prepare a trial balance from the following information for
Learn a New Language, Inc. for December 31, 2012.
Accounts payable $5,012
Common stock $9,692
Cash $3,928
Notes payable $1,439
Wages expense $777
Marketing expense $493
Equipment $8,345
Accounts receivable $1,142
Inventory $8,074
Sales $6,616
To prepare a trial balance, you need to organize the given information into two columns: debit and credit.
- Accounts payable, notes payable, wages expense, marketing expense, equipment, accounts receivable, and inventory are all asset and liability accounts, so they will be placed in the debit column.
- Common stock and sales are equity and revenue accounts, respectively, so they will be placed in the credit column.
- Cash, being an asset account, will be placed in the debit column.
Here is the trial balance for Learn a New Language, Inc. as of December 31, 2012:
Debit:
Accounts payable - $5,012
Notes payable - $1,439
Wages expense - $777
Marketing expense - $493
Equipment - $8,345
Accounts receivable - $1,142
Inventory - $8,074
Cash - $3,928
Credit:
Common stock - $9,692
Sales - $6,616
To confirm the accuracy of the trial balance, ensure that the total of the debit column equals the total of the credit column. In this case, the debit total is $28,721, and the credit total is $16,308, which balances.