Given the Following Transactions for the Warren Candle Company, Prepare

question 81

Essay

Given the following transactions for The Warren Candle Company, prepare a trial balance as of August 31, 2019
a)Owner, Wendy Warren invested $16,000 cash and equipment with a value of $7,500 into the business.
b)Purchased supplies on account, $350.
c)Rented office space paying one month's rent, $950.
d)Performed a service on account, $1,500.
e)Purchased a truck by paying $2,000 down and signing a note for the balance of $19,900.
f)Performed a service and immediately collected $900 cash.
g)Owner, Wendy Warren withdrew $900 for personal use.

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Definitions:

Merchandise Inventory

Goods a company intends to sell to customers that are stored as inventory.

Purchases

Represents the total amount of goods bought by a business for resale or for use in production.

Rental Income

This is income received from renting out property or equipment. It is often considered passive income and must be reported for tax purposes.

Revenue

The total income generated from normal business operations and before any expenses are deducted.