17.

Prepare Balance Sheet

Backbay Company provides local mail delivery service in the financial district of Mumbai.
The trial balance of the company is as follows:

BACKBAY COMPANY
Trial Balance, February 28, 20XX

Account Debit=assets/expenses Credit=liabilities/capital

Office Equipment 7000

Accumulated Depreciation, 1000

Office Equipment

Office Supplies 3800

Debtors/receivables 1900

Cash 770

Prepaid Rent 2400

Creditors/payables 1100

Unearned Revenue 400

Share Capital 10000

Retained Earning 2100

Dividends 1400

Revenue From Services 7200

Salaries Expense 3800

Telephone Expense 730

Total 21800 21800

Additional Information:

 Prepaid rent represents rent for February to April

 The inventory of office supplies at the end of February was Rs.3200
 Revenue earned for services performed but not yet billed at the end of February was
Rs.1600
 Revenue earned for services performed, paid for in advance, was Rs.210
 Depreciation on office equipment for February was Rs.250
 Accrued salaries at the end of February were Rs.540
 Standard Bank has been approached by two customers for a short term loan of
Rs.3000. The following summarized information is available from the latest financial
statements: