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

Show more Show less

Answer


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.

Need homework help now?

Ask your first question for free

Ask question

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit