Multiple Choice
Which of the following best describes the purpose of an adjusted trial balance prepared at December 31 for Wilson Trucking Company?
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2. Transaction Analysis
Trial Balance
Multiple Choice
Given the following account balances for Cowboy Law Firm at the end of December:- Cash: \$12,000- Accounts Receivable: \$5,000- Supplies: \$2,000- Accounts Payable: \$3,000- Service Revenue: \$10,000- Salaries Expense: \$4,000What is the correct total for the debit column in the trial balance?
A
\$17,000
B
\$21,000
C
\$19,000
D
\$23,000
Verified step by step guidance1
Step 1: Understand the structure of a trial balance. A trial balance lists all accounts and their balances, separating them into debit and credit columns. Debits typically include assets and expenses, while credits include liabilities, revenues, and equity.
Step 2: Identify the accounts that belong in the debit column. From the given data, Cash (
\$12,000
), Accounts Receivable (
\$5,000
), Supplies (
\$2,000
), and Salaries Expense (
\$4,000
) are debit accounts because they represent assets and expenses.
Step 3: Exclude accounts that belong in the credit column. Accounts Payable (
\$3,000
) and Service Revenue (
\$10,000
) are credit accounts because they represent liabilities and revenues.
Step 4: Add the balances of all debit accounts. Use the formula:
Step 5: Verify the total by ensuring that the sum of the debit column matches the correct answer provided in the problem (
\$19,000
). This ensures accuracy in the trial balance preparation.
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