Question

The adjusted trial balance for PI Detectives reported the following account balances: Accounts Receivable $500; Supplies $9,000; Prepaid Insurance $7,200; Equipment $28,000; Accumulated Depreciation $4,000; Accounts Payable $200; Deferred Revenue $5,000; Notes Payable $3,000; Common Stock $22,000; Retained Earnings $5,700; Dividends $3,000; Service Revenue $33,800; Salaries and Wages Expense $20,000; and Depreciation Expense $1,000. Prepare an adjusted trial balance as of December 31, and solve for its missing Cash balance.

Answer 1

Answer:Cash balance = $5,000

Step-by-step explanation:

Account Titles Debit Credit

Accounts Receivable $ 500

Supplies $9,000

Prepaid Insurance $7,200

Equipment $ 28,000

Accumulated Depreciation—Equipment $4,000

Accounts Payable $200

Unearned Revenue $5,000

Notes Payable $3,000

Common Stock $ 22,000

Retained Earnings $ 5,700

Dividends $3,000

Service Revenue $ 33,800

Salaries and Wages Expense $20,000

Depreciation Expense $1,000

TOTALS $68,700 $ 73,700

Cash Balance

($73,700 -68,700) $5,000