Question

Trial Balance National Park Tours Co. is a travel agency. The nine transactions recorded by National Park Tours during May 2019, its first month of operations, are indicated in the following T accounts:
Cash Equipment Beth Worley, Drawing
(1) 75,000 (2) 900 (3) 8,000 (9) 2,500
(7) 8,150 (3) 1,600
(4) 6,280
(6) 2,700
(9) 2,500
Accounts Receivable Accounts Payable Fees Earned
(5) 12,300 (7) 8,150 (6) 2,700 (3) 6,400 (5) 12,300
Supplies Beth Worley, Capital Operating Expenses
(2) 900 (8) 660 (1) 75,000 (4) 6,280
(8) 660
a. Prepare an unadjusted trial balance, listing the accounts in their proper order. Place the amounts in the proper columns. If an entry is not required in an amount box, leave it blank. National Park Tours Co. Unadjusted Trial Balance May 31, 2019 Debit Balances Credit Balances Fees Earned 12,300
b. Based upon the unadjusted trial balance, determine the net income or net loss. $

Answer 1

Answer: The answers are provided below.

Explanation:

a. The trial balance is a worksheet whereby every balance of all the ledgers will be compiled to the debit and the credit account column and the totals are equal.

The trial balance has been attached.

b. The Net income which is also referred to as the net earnings, is calculated as the sales minus the cost of goods sold, general, selling, operating and administrative expenses,

interest, depreciationn, taxes, and

every other expenses.

In this case, the net income will be the value of the operating expenses subtracted from the fees earned. This will be:

Net income will be:

= 12300-6940

= 5360