Prepare a Trial Balance for Zeng Inc

question 110

Essay

Prepare a trial balance for Zeng Inc. dated April 30, 2014, based on the following transactions that occurred during the month of June.
a. Owner invested $55,000 cash into the business and received common shares in return.
b. Rented an office and paid one month's rent, $700.
c. Purchased $600 of supplies on account.
d. Performed services on account, $7,500.
e. Paid $4,200 cash for office furniture.
f. Owner received a dividend of $500.
g. Collected $3,000 on account.

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Definitions:

Net Book Value

The value of an asset as recorded on the balance sheet, calculated by subtracting accumulated depreciation or amortization from its original cost.

Trend Analysis

The process of comparing business data over time to identify any consistent results or trends.

Aging Asset Base

Refers to a company's fixed assets becoming older and potentially less efficient or valuable over time.

Expensing R&D

The process of charging research and development costs as expenses in the period they are incurred rather than capitalizing them.