Airmail 2.0 trial balance
A trial balance is a list of all general ledger accounts and their corresponding debit or credit balances. Here is a sample trial balance for Airmail 2.0:
Debit Column
- Cash ($10,000)
- Accounts Receivable ($5,000)
- Inventory ($8,000)
- Prepaid Rent ($2,000)
- Equipment ($15,000)
- Accumulated Depreciation ($3,000)
- Salaries Expense ($8,000)
- Rent Expense ($2,000)
- Utilities Expense ($1,000)
- Insurance Expense ($500)
- Total Debits ($41,500)
Credit Column
- Accounts Payable ($3,000)
- Notes Payable ($5,000)
- Accrued Salaries ($2,000)
- Accrued Rent ($1,000)
- Utilities Payable ($500)
- Insurance Payable ($200)
- Sales Revenue ($20,000)
- Cost of Goods Sold ($12,000)
- Gross Profit ($8,000)
- Operating Expenses ($10,000)
- Net Income ($2,000)
- Total Credits ($41,500)
The trial balance shows that the total debits equal the total credits, which is a necessary condition for the accounting equation to be in balance. The trial balance is used as a starting point for preparing financial statements, such as the balance sheet and income statement.
Note: The amounts in this trial balance are fictional and for demonstration purposes only.