Question

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

Accounts payable $1,500
Fees earned $3,600
Accounts receivable 1,800
Insurance expense 1,300
Prepaid insurance 2,000
Land 3,000
Cash 3,200
Wages expense 1,400
Dividends 1,200
Common stock 8,800
Prepare a trial balance. The total of the debits is
Select one:a. $9,700b. $13,900c. $11,200d. $12,700

Answer 1

The correct answer is $13.900.

Step-by-step explanation:

To carry out the verification balance, the nature of the accounts presented in the normal balance of the organization must be taken into account. We have that the assets and income have a debit nature, so it is necessary that the corresponding to that premise are:

Accounts receivable $ 1,800 - Active

Insurance expenses $ 1,300 - Expenses

Prepaid insurance $ 2,000 - Expenses

Land $ 3,000 - Active

Cash $ 3,200 - Assets

Salary Expenses $ 1,400 - Expenses

On the other hand there are accounts that despite being of a credit nature, have credit movements as a result of ordinary activities, which would be:

Dividends: $ 1,200 - Debit nature liability

TOTAL DEBITS: $ 13,900