) remains in balance at every step. For a service business like the one in this activity, tracking cash flow against expenses like rent or supplies is vital for understanding operational costs. The subsequent

Remember that when the owner takes cash for personal use, you debit [Owner Name], Drawing and credit Cash . 2. General Ledger Posting

Both Debit and Credit columns should balance at $31,030.00 .

Be cautious of free PDFs online claiming to be the "full answer key." Many are outdated, inaccurate, or contain malware. Verify the edition of your textbook (e.g., 9th, 10th, or 11th edition) before trusting any source.

This activity is a capstone project designed to test everything you have learned in the first several chapters of your accounting textbook. You are generally tasked with acting as the accountant for a fictional service business (often named something like "Peak Performance" or "Extreme Adventures"). The primary phases of the project typically include:

If your Trial Balance totals do not match, do not panic. Use these systematic auditing strategies to find the error:

If your difference is evenly divisible by 9, you likely have a transposition error (e.g., writing $540 instead of $450) or a slide error (e.g., writing $54.00 instead of $540.00).

Debit Accounts Receivable/[Customer Name] ; Credit Sales .

Your net profit or loss determines if the business was successful during the period.

Look at the end-of-month data provided on page 153 for the remaining values of Supplies and Insurance.

Debit Supplies; Credit Cash (or Accounts Payable). Buying Insurance: Debit Prepaid Insurance; Credit Cash.