Prepare a Trial Balance for Brandt Bed and Breakfast for December 31, 2020

Overview

The trial balance provides a snapshot of the financial position of Brandt Bed and Breakfast as of December 31, 2020.

Account Balances

To prepare a trial balance for Brandt Bed and Breakfast as of December 31, 2020, we will use the following account balances:

1. Cash: $10,000
2. Accounts Receivable: $5,000
3. Supplies: $2,000
4. Prepaid Insurance: $3,000
5. Land: $50,000
6. Building: $100,000
7. Accumulated Depreciation - Building: $10,000
8. Accounts Payable: $7,000
9. Salaries Payable: $2,000
10. Mortgage Payable: $80,000
11. Owner's Capital: $100,000
12. Owner's Drawings: $5,000
13. Revenue: $20,000
14. Rent Expense: $4,000
15. Utilities Expense: $2,000
16. Insurance Expense: $1,000
17. Depreciation Expense: $1,000
18. Salaries Expense: $3,000

Trial Balance

To prepare the trial balance, we need to list all the accounts and their respective debit or credit balances. Here's how the trial balance for Brandt Bed and Breakfast as of December 31, 2020 would look:

• Cash: $10,000
• Supplies: $2,000
• Prepaid Insurance: $3,000
• Land: $50,000
• Building: $100,000
• Accumulated Depreciation - Building: $10,000
• Accounts Receivable: $5,000
• Owner's Capital: $100,000
• Revenue: $20,000
• Rent Expense: $4,000
• Utilities Expense: $2,000
• Insurance Expense: $1,000
• Depreciation Expense: $1,000
• Salaries Expense: $3,000

• Accounts Payable: $7,000
• Salaries Payable: $2,000
• Mortgage Payable: $80,000
• Owner's Drawings: $5,000

The total debits should equal the total credits, indicating that the accounts have been properly balanced. The trial balance provides a snapshot of the financial position of Brandt Bed and Breakfast as of December 31, 2020.