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

The corrected trial balance now shows that total debits equal total credits at $24,400 after ensuring that each account balance is placed in the correct debit or credit column.

Step-by-step explanation:

To correct the trial balance, we must ensure that the total debits equal the total credits. A trial balance lists all the account balances in an entity's accounting records at a specific time. Debits and credits must always be equal due to the double-entry accounting system. From the data provided, here is the corrected trial balance:

Account Debit Credit

Cash $7,300

Accounts Receivable $2,100

Equipment $10,400

Dividends $600

Salaries Expense $3,200

Utilities Expense $800

Accounts Payable $3,900

Deferred Revenue $1,100

Common Stock $11,000

Retained Earnings $3,900

Service Revenue $4,500

Total $24,400 $24,400

After adjusting the trial balance, the total debits are now equal to the total credits, both totaling $24,400.

Answer 2

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.