Question

Which of the following statements is supported by the trial balance sheet below for Woodruff-Simpson after the company's first month of business? Woodruff-Simpson Trial Balance June 30 Dr. Cr. Cash 58,000 Accounts Receivable 4,000 Prepaid Insurance (1 year policy) 3,600 J. Woodruff, Capital 33,100 K. Simpson, Capital 10,000 J. Woodruff, Drawing 3,600 Accounts Payable 5,500 Unearned Consulting Fees 12,000 Consulting Fees 9,300 Rent Expense 1,000 Insurance Expense 0 69,900 69,900

A. TOTAL ASSETS EQUAL $65,600
b. Total assets equal $69,200.
c. Total liabilities equal $5,500.
d. Total liabilities equal $26,800.

Answer 1

The statement supported by the trial balance sheet is that total liabilities equal $5,500.

Step-by-step explanation:

In the trial balance sheet for Woodruff-Simpson after the company's first month of business, the total assets equal $69,900.

This can be calculated by adding up all the debit (Dr.) amounts from the trial balance, which include cash, accounts receivable, prepaid insurance, and the capital accounts.

The total liabilities can be found by adding up the credit (Cr.) amounts, which include accounts payable and unearned consulting fees. In this case, the total liabilities equal $5,500. Therefore, option c. Total liabilities equal $5,500 is the statement supported by the trial balance sheet.