Question

The following are the current? month's balances for ABC Financial? Services, Inc. before preparing the trial balance. Accounts Payable $ 7 comma 000 $7,000 Revenue 6 comma 000 6,000 Cash 3 comma 000 3,000 Expenses 16 comma 500 16,500 Furniture 10 comma 000 10,000 Accounts Receivable 11 comma 000 11,000 Common Stock ?? Notes Payable 4 comma 500 4,500 What amount should be shown for Common Stock on the trial? balance? A. $ 11 comma 500 $11,500 B. $ 23 comma 000 $23,000 C. $ 24 comma 000 $24,000 D. $ 44 comma 000 $44,000

Answer 1

Answer:

B. $ 23 comma 000 $23,000

Explanation:

Following equation to calculate the common stock Value

Total Debit = Total Credit

40,500 = $17,500 + Common stock value

Common stock value = $40,500 - $17,500 = $23,000

Accounts with Credit balances

Accounts Payable       $7,000

Revenue                      $6,000

Common Stock              ?

Notes Payable              $4,500

Total Debit balances                    $17,500

Accounts with Debit balances

Cash                             $3,000

Expenses                     $16,500

Furniture                      $10,000

Accounts Receivable  $11,000

Total Debit balances                      40,500