Question

Your study partner is having trouble getting total debits to equal total credits in the trial balance. Trial Balance Accounts Debit Credit Cash $ 7,300 Accounts Receivable $ 2,100 Equipment 10,400 Accounts Payable 3,900 Deferred Revenue 1,100 Common Stock 11,000 Retained Earnings 3,900 Dividends 600 Service Revenue 4,500 Salaries Expense 3,200 Utilities Expense 800 Total $ 36,400 $ 12,400 Prepare a corrected trial balance by placing each account balance in the correct debit or credit column.

Answer 1

Answer:

We have a total Debit and credit amount of $24,400

Explanation

Attached herewith is the adjusted trial balance of the company. In preparation of trial balance, we must consider na nature of the accounts to be recorded. All assets account with normal balances should be posted as debits. All Liabilities and equities accounts with normal balances should be posted on credit side. Revenue is on credit side and all expenses on the other hand is posted on debit side.