Question

Accounts Balances Accounts Balances Cash $ 40,000 Common Stock $ 50,000 Accounts Receivable 50,000 Retained Earnings 35,000 Supplies 1,100 Dividends 1,100 Prepaid Rent 3,000 Service Revenue 65,000 Equipment ? Salaries Expense 30,000 Accounts Payable 17,000 Rent Expense 12,000 Salaries Payable 5,000 Interest Expense 3,000 Interest Payable 3,000 Supplies Expense 7,000 Deferred Revenue 9,000 Utilities Expense 6,000 Notes Payable 30,000 Required: Prepare a trial balance by placing amounts in the appropriate debit or credit column and determining the balance of the Equipment account.

Answer 1

Answer:

Trial Balance

                                                  Debit                       Credit

                                                       $                               $

Cash                                          40,000

Common Stock                                                         50,000

Accounts Receivable               50,000

Retained Earnings                                                    35,000

Supplies                                        1,100

Dividends                                      1,100

Prepaid Rent                               3,000

Service Revenue                                                      65,000

Equipment                                 60,800

Salaries Expense                      30,000

Accounts Payable                                                     17,000

Rent Expense                            12,000

Salaries Payable                                                         5,000

Interest Expense                        3,000

Interest Payable                                                          3,000

Supplies Expense                       7,000

Deferred Revenue                                                      9,000

Utilities Expense                         6,000

Notes Payable                                                          30,000

Totals                                      $214,000               $214,000

The Equipment Balance is $60,800. This is the amount that will ensure that the Debit equals the Credit side.

Explanation:

The Trial Balance is used to check for mathematical accuracy. The debit Totals must equal the credit totals. In our case we expect  debit totals to have a shortfall and this shortfall belongs to Equipment. The Trial Balance has been prepared above.