Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Trial Balance

Financial Accounting

2. Transaction Analysis

Trial Balance

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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?

$17,000

$21,000

$19,000

$23,000

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Verified step by step guidance

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:

Total = 12,000 + 5,000 + 2,000 + 4,000

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.