Question

The following account balances were listed on the trial balance of Edgar Company at the end of the period: Account Balance Accounts Payable $ 32,200 Cash 50,500 Common Stock 38,000 Equipment 17,500 Land 49,000 Notes Payable 64,000 The company’s trial balance is not in balance and the company’s accountant has determined that the error is in the cash account. What is the correct balance in the cash account?

Answer 1

Answer:

The correct balance in the cash account is $67,700

Explanation:

Trial balance:  In trial balance, there are two columns namely debit columns and credit columns. The total of debit and credit columns should always be matched.  

The debit columns records assets and expenses side  whereas, the credit column record revenue, stockholder equity, and the liability side.

So, the total debit includes =  Cash  +  Equipment + Land

= Cash + $17,500 + $49,000

= Cash + $66,500

And, the total credit side = Accounts payable + common stock + notes payable

= $32,200 + $38,000 + $64,000

= $134,200

Now balance these two sides, so the correct balance would be

Cash + $66,500 =  $134,200

So, the cash = $134,200 - $66,500 = $67,700