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1. Prepare a trial balance for Benson Company based on the provided account balances as of June 30, 20XX.

2. In the trial balance, determine the balance of the Benson, Capital account. Which of the following options correctly represents its balance?

a) Debit balance of $500
b) Credit balance of $500
c) Debit balance of $1500
d) Credit balance of $1500

User Vrwim
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1 Answer

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Final answer:

The balance of the Benson, Capital account in the trial balance can be either a debit balance of $500 or a debit balance of $1500, depending on additional information. This indicates that the company has more distributions than contributed capital.

Step-by-step explanation:

In order to determine the balance of the Benson, Capital account in a trial balance, we need to understand the concept of the trial balance. A trial balance is a list of all the accounts and their balances used to test the accuracy of the bookkeeping and accounting entries. It includes all assets, liabilities, and equity accounts.



Since Benson, Capital is an equity account, it can have either a debit or credit balance depending on the transactions that have occurred. If the account has a credit balance, it means that the company has more contributed capital than distributions. On the other hand, if the account has a debit balance, it means that the company has more distributions than contributed capital.



Based on the options provided, the correct balance of the Benson, Capital account can be either a) Debit balance of $500 or c) Debit balance of $1500. We cannot determine the exact balance without additional information. Therefore, the correct answer would be either a) Debit balance of $500 or c) Debit balance of $1500.

User Abhilash Chandran
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