Author Question: Cost of merchandise sold is often the largest expense on a merchandising company income statement. ... (Read 109 times)

D2AR0N · **on:** Jul 5, 2018

Cost of merchandise sold is often the largest expense on a merchandising company income statement.
a. True
b. False

Indicate whether the statement is true or false

Question 2

Using the information in the T-accounts below, prepare an unadjusted trial balance for T-Ball, Inc.:

Cash Notes Payable Common Stock
(a) 50,000
(b) 30,000

(e) 60,000

40,000 (c)

20,000 (f) 30,000(b) 50,000 (a)

Accounts receivable
(d) 10,000
60,000(e)

Computer
(c)40,000

Service revenue
100,000(d)

Salary Expense
(f) 20,000

T-Ball, Inc.
Unadjusted Trial Balance
December 31, 2011
Debit Credit

Totals

prumorgan · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

True

Answer to Question 2

T-Ball, Inc.
Unadjusted Trial Balance
December 31, 2011
Debit Credit
Cash 80,000
Accounts receivable 40,000
Computer 40,000
Notes Payable 30,000
Common stock 50,000
Service revenue 100,000
Salary expense 20,000
Totals 180,000 180,000