Question

The adjusted trial balance for PI Detectives reported the following account balances: Accounts Receivable $500; Supplies $9,000; Prepaid Insurance $7,200; Equipment $28,000; Accumulated Depreciation $4,000; Accounts Payable $200; Deferred Revenue $5,000; Notes Payable $3,000; Common Stock $22,000; Retained Earnings $5,700; Dividends $3,000; Service Revenue $33,800; Salaries and Wages Expense $20,000; and Depreciation Expense $1,000. Prepare an adjusted trial balance as of December 31, and solve for its missing Cash balance.

Answer 1

Answer:Cash balance =  $5,000

Explanation:

Account   Titles                                      Debit                             Credit

Accounts Receivable                 $ 500  

Supplies                                        $9,000  

Prepaid Insurance                        $7,200  

Equipment                                  $ 28,000  

Accumulated Depreciation—Equipment                        $4,000

Accounts Payable                                                                 $200

Unearned Revenue                                                     $5,000

Notes Payable                                                               $3,000

Common Stock                                                               $ 22,000

Retained Earnings                                                             $  5,700

Dividends                                      $3,000  

Service Revenue                                                                 $ 33,800

Salaries and Wages Expense     $20,000  

Depreciation Expense                  $1,000  

  TOTALS                                        $68,700                         $ 73,700

Cash Balance

($73,700 -68,700)                                 $5,000