Question

Question:Seth’s Tax Services had the following accounts and account balances after adjusting entries. Assume all accounts have normal balances.Cash Land Accounts Payable Utilities Payable Accumulated Depreciation—Equipment Service Revenue Supplies Expense Dividends \( ? 26,000 150 3,700 1,800 75,000 1,100 14,000 Equipment Accounts Receivable Common Stock Office Supplies Utilities Expense Unearned Revenue Depreciation Expense—Equipment Salaries Expense \) 11,000 4,950 700 22,600 1,650 900 1,900 5,600Prepare the adjusted trial balance for Seth’s Tax Services as of December 31, 2018.

Short answer

Answer

The adjusted trial balance is shown as follows:

Seth’s Tax Services
Adjusted Trial Balance
December 31, 2018
Balance
Account Title	Debit	Credit
Cash	$37,250
Accounts Receivable	4,950
Office Supplies	700
Land	26,000
Equipment	11,000
Accumulated Depreciation—Equipment		$1,800
Accounts Payable		3,700
Utilities Payable		150
Unearned Revenue		900
Common Stock		22,600
Dividends	14,000
Service Revenue		75,000
Salaries Expense	5,600
Depreciation Expense—Equipment	1,900
Supplies Expense	1,100
Utilities Expense	1,650	_______
Total	$104,150	$104,150

Step-by-step solution

Explanation of Trial Balance

In the case of Seth’s Tax Services, the debit and credit balance equals $104,150 in the adjusted trial balance.

Calculation of Cash Balance

The cash balance is calculated as follows:

$$\begin{gathered} \mathbf{\text{Cash=Totalcreadits-TotaldebitesexchangingCash}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{104}\mathbf{,}\mathbf{150}\mathbf{-}\mathbf{\$}\mathbf{66}\mathbf{,}\mathbf{900} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{37}\mathbf{,}\mathbf{250} \end{gathered}$$