Question

Pharoah's Hotel opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows.

PHAROAH'S HOTEL
Trial Balance
May 31, 2022
Account Number
101
126
130
140
141
149
200
201
208
301
429
Cash
Supplies
Prepaid Insurance
Land
Buildings
Equipment
Notes Payable
Accounts Payable
Unearned Rent Revenue
Owner's Capital
Rent Revenue
Debit
$3,600
2,050
3,000
13,000
61,800
14,400
Credit
$40,000
4,900
3,000
41,200

Answer 1

The total debits in the trial balance add up to $99,050, while the total credits add up to $88,100. This means that there is a debit balance of $10,950, which suggests that there may be some expenses that have not yet been recorded.