Question

The Unadjusted Trial Balance columns of a work sheet total 84,000. The Adjustments columns contain entries for the following:

1. Office supplies used during the period,1,200.
2. Expiration of prepaid rent, 700.
3. Accrued salaries expense,500.
4. Depreciation expense, 800.
5. Accrued service fees receivable,400.

The Adjusted Trial Balance columns total is:
1) $80,400
2) $84,000
3) $85,700
4) $85,900
5) $87,600

Answer 1

The total for the Adjusted Trial Balance columns is calculated by subtracting the total adjustments from the Unadjusted Trial Balance. The adjustments amount to a net decrease of $2,800. Therefore, the Adjusted Trial Balance total should be $81,200, which is not listed among the provided options.

Step-by-step explanation:

To determine the Adjusted Trial Balance columns total, we start with the initial Unadjusted Trial Balance total which is $84,000. We then consider the adjustments needed:

• Office supplies used: $1,200
• Expiration of prepaid rent: $700
• Accrued salaries expense: $500
• Depreciation expense: $800
• Accrued service fees receivable: $400

Adjustments 1, 2, 3, and 4 represent expenses that reduce the total, and adjustment 5 represents an increase in assets that increases the total. When we calculate the adjustments, we have a net decrease of $1,200 + $700 + $500 + $800 - $400 = $2,800.

Subtracting the net adjustments from the unadjusted total, we have $84,000 - $2,800 = $81,200. Therefore, the correct total for the Adjusted Trial Balance columns is $81,200, which was not provided as an option in the question, suggesting there may be an error in the available choices.