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

Wolfpack Construction has the following account balances at the end of the year: Cash $12,000; Accounts Receivable $8,000; Equipment $25,000; Accounts Payable $5,000; Common Stock $30,000; Retained Earnings $10,000. What is the total of the debit column in the trial balance?

$35,000

$55,000

$50,000

$45,000

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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. Assets typically have debit balances, while liabilities and equity have credit balances.

Step 2: Identify the accounts with debit balances. In this problem, the accounts with debit balances are Cash ($12,000), Accounts Receivable ($8,000), and Equipment ($25,000). These are asset accounts, which are recorded on the debit side.

Step 3: Add the debit balances together. To find the total of the debit column, sum the balances of Cash, Accounts Receivable, and Equipment. Use the formula:

(Cash + Accounts Receivable + Equipment)

Step 4: Verify that no other accounts are listed as debits. In this problem, only the asset accounts are debits, and liabilities and equity accounts (Accounts Payable, Common Stock, Retained Earnings) are credits.

Step 5: Confirm the total of the debit column matches the sum of the identified debit balances. This ensures the trial balance is accurate and follows the accounting equation.