On December 31, Year 2, Morgan Company had the following normal account balances in its general ledger. Use this information to prepare a trial balance. Land $18,000
Unearned revenue 16,200
Dividends 5,200
Prepaid rent 6,850
Cash 59,010
Salaries expense 12,500
Accounts payable 1,940
Common stock 23,000
Operating expense 13,800
Office supplies 1,900
Advertising expense 2,100
Retained earnings, Beginning 14,300
Service revenue 70,720
Accounts receivable 6,800

Answer and Explanation:

The preparation of the trial balance is given below:

Particulars                   Debit amount           Credit amount

Land                            $18,000

Unearned revenue                                       $16,200

Dividend                      $5,200

Prepaid rent                 $6,850

Cash                            $59,010

Salaries expense       $12,500

Account payable                                            $1,940

Common stock                                              $23,000

Operating expense     $13,800

Office supplies             $1,900

Advertising expense  $2,100

Retained earnings                                        $14,300

Service revenue                                          $70,720

Account receivable       $6,800

Totals                             $126,160             $126,160

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