Question

The ledger account balances for Vaughn Manufacturing at December 31, 2022 are as follows:

Answer 1

Answer:

Total debits balance = 8466

Explanation:

Cash = 480

Account receivable = 570

prepaid insurance = 96

Supplies = 270

Equipment = 4500

Salaries and wages expense = 1900

Rent expense = 650

Total debit balance on the trial balance = 8466 at dec 31,2022 because all above should be debit balance.

Answer 2

Answer: The balance in the debit side of the trial balance is $8,466

Explanation:

Trial balance as at 31st December, 2022

Account Titles. Dr.

$

Cash. 480

Account Receivable. 570

Prepaid insurance. 96

Equipment. 4,500

Supplies. 270

Salaries & Wages Expense. 1,900

Rent Expense. 650

--------------

8,466

------------------

The following Account are credited in the trial balance

Account Titles. Cr

$

Accumulated Depreciation Equipment 630

Account Payable. 394

Common Stock. 1,310

Service Revenue. 3,100

Retained Earning. 1,600

-----------------

7,034

--------------------

It is discovered that, The credit side do not agree with the debit side, the credit side is originally short by $1,432 . This is due to an error such as error in casting in either the book of original entry or the ledger account, omission of some ledger balances including the cash book when extracting the trial balance,some item not posted from the books of original entry to the ledger,ledger balances entered on the wrong side of the trial balance, figures misplaced or transposed in account. Therefore ,a Suspense Account should be prepared to show the difference in the trial balance of $1432