Final answer:
The total debits ($307,380) equal the total credits ($307,380), which is a good sign that the accounting equation is in balance
Step-by-step explanation:
The trial balance is a list of all the general ledger accounts along with their balances after adjusting entries have been made.
Here's a breakdown of the accounts and their balances:
Debits:
Buildings: $128,800
Accounts Receivable: $14,520
Prepaid Insurance: $4,680
Cash: $18,040
Equipment: $62,400
Land: $67,000
Insurance Expense: $780
Depreciation Expense: $7,360
Interest Expense: $3,800
Total Debits: $307,380
Credits:
Owner's Capital: $115,000
Accumulated Depreciation-Buildings: $42,600
Accounts Payable: $12,300
Notes Payable: $97,780
Accumulated Depreciation-Equipment: $18,720
Interest Payable: $3,800
Service Revenue: $17,180
Total Credits: $307,380
In a balanced trial balance, the total debits should equal the total credits, and in this case, they do ($307,380 on both sides). This indicates that the accounting equation is in balance.
Complete question:
The adjusted trial balance for McCoy Bowling Alley at December 31, 2017, contains the following accounts. Buildings Accounts Receivable Prepaid Insurance Cash Equipment Land Insurance Expense Depreciation Expense Interest Expense Debits $128,800 14,520 4,680 18,040 62,400 67,000 780 7,360 3,800 $307,380 Owner's Capital Accumulated Depreciation-Buildings Accounts Payable Notes Payable Accumulated Depreciation-Equipment Interest Payable Service Revenue Credits $115,000 42,600 12,300 97,780 18,720 3,800 17,180 $307,380