Prepare a Trial Balance from the Ledger Accounts of Black

question 138

Essay

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31, 2018. $$\begin{array} { l r l r } \text { Accounts Payable } & \$ 1,100 & \text { Rent Expense } & \$ 500 \\\text { Accounts Receivable } & 1,700 & \text { Service Revenue } & 3,000 \\\text { Cash } & 1,400 & \text { Supplies } & 200 \\\text { Common stock } & 2,000 & \text { Salaries and Wages Expense } & 1,300 \\\text { Dividends } & 1,000 & &\end{array}$$

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Definitions:

Loan

A sum of money given to a person or entity with the expectation of repayment of the original sum along with agreed interest over a specified period.

Nominal Rate

Refers to the interest rate before adjustments for inflation or other factors.

Effective Rate

The actual interest rate that borrowers pay or investors receive on a financial product, once all the compounding periods are factored in, often higher than the nominal rate.

Compounding Interval

The frequency at which interest is applied to the principal sum of a loan or deposit, affecting the total interest earned or paid.