Question

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Accounts Payable $486 Fees Earned $2,807 Accounts Receivable 854 Insurance Expense 405 Prepaid Insurance 1,698 Land 2,275 Cash 1,878 Wages Expense 519 Drawing 751 Capital 5,087 Prepare a trial balance. The total of the debits is a.$5,087 b.$3,218 c.$8,380 d.$1,883

Answer 1

Answer:

(i) The trial balance of Monroe Entertainment Co.  is as shown below.

                                                        Amounts in $  

Accounts                             Debits                 Credits  

 

Accounts Payable                                                486.00  

Fees Earned                                                       2,807.00  

Accounts Receivable            854.00  

Insurance Expense            405.00  

Prepaid Insurance                    1,698.00  

Land                                    2,275.00  

cash                                    1,878.00  

Wages Expense                      519.00  

Drawing                                      751.00  

Capital                                                               5,087.00  

Balances                                   8,380.00              8,380.00  

(ii) Total debits is c.$8,380

Explanation:

The trial balance shows the balances of all accounts in terms of debits and credit and is used to check the mathematical accuracy of posted entries. The debits are the assets and expenses while the credits are the equity, income and liabilities.

Total debits is $8,380