# How do you work out number 8? Also I tried finding equity doing the equation but that doesn’t work out to the retained earnings in the chart and also tried adding up all the equity accounts but that doesn’t result in any of the answer choices

Xinyuan

Trial Balance: The trial balance is the arithmetical representation of the debit and credit amounts in a double-entry accounting system. The trial balance is prepared in order to ensure the arithmetical accuracy of the accounting data.

a.

\$16,700: This is the correct option as the amount of accounts payable is \$16,700 as per the given trial balance.

b.

\$12,200: This is the incorrect option as the amount of accounts payable is \$16,700 as per the given trial balance.

c.

\$21,900: This is the incorrect option as the amount of accounts payable is \$16,700 after taking debit and credit amounts in account.

d.

\$13,700: This is the incorrect option as the amount of accounts payable is \$16,700 when the total of credit amount is deducted from the total of debit amounts.

Working note:

The given trial balance has been recorded as follows:

 Trial Balance as of May 31, 2008 Particulars Debit Credit Unearned Rent \$       7,700 Common Stock \$     38,000 Utilities expense \$        4,200 Cash \$      27,000 Accounts Receivable \$        4,500 Prepaid Insurance \$        5,700 Accounts payable ??? Dividends \$        1,500 Building \$      48,000 Consulting Fees \$     23,000 Retained earnings \$       9,500 Office Supplies \$        4,000 Total \$      94,900 \$     78,200

Computation of amount of accounts payable:

Thus, the amount of accounts payable is \$16,700. The correct choice is option a.

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