Given the Following Transactions for Clip Corporation,prepare a Trial Balance

question 94

Essay

Given the following transactions for Clip Corporation,prepare a trial balance as of March 31,2017.
a.Owner invested $15,250 cash and $6,500 worth of equipment into the business received common shares in return.
b.Purchased supplies on account,$450.
c.Rented office space paying one months rent,$850.
d.Performed services for a customer on account,$1,400.
e.Purchased a truck by paying $1,000 down and signing a note for the remainder of $8,500.
f.Performed services for a customer and immediately collected $800 cash.
g.Paid employees salaries of $1,200.
h.Owner received a dividend of $500.

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Definitions:

Variable Costs

Costs that change in direct proportion to changes in the level of production or sales volume.

Fixed Administration Costs

Ongoing expenses not directly tied to production or sales volume, such as salaries of executive staff and office rent.

Inpatient Days

The total number of days that patients spend admitted to a hospital or healthcare facility for treatment.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.