Question

Below are the account balances of Bruins Company at the end of November. Accounts Cash Accounts Receivable Supplies Prepaid Rent Equipment Accounts Payable Salaries Payable Interest Payable Deferred Revenue Notes Payable Balances Accounts $ 40,000 Common Stock 50,000 Retained Earnings 1,100 Dividends 3,000 Service Revenue Salaries Expense 17,000 Rent Expense 5,000 Interest Expense 3,000 Supplies Expense 9,000 Utilities Expense 30,000 Balances $50,000 35,000 1,100 65,000 30,000 12,000 3,000 7,000 6,000 Required: Prepare a trial balance by placing amounts in the appropriate debit or credit column and determining the balance of the Equipment account. BRUINS COMPANY Trial Balance November 30 Debit Accounts Credit Totals

Answer 1

Credit | Explanation All assets owned by the company are debit in nature. Hence, has a debit balance BRUINS COMPANY Trial Balance November 30 Accounts | Debit Cash $ 40,000 Accounts receivable $ 50,000 Supplies $ 1,100 Prepaid Rent $ 3,000 Equipment $ 60,800 Accounts Payable Salaries Payable Interest Payable Deferred Revenue Notes Payable Common Stock Retained Earnings Dividends $ 1,100 Service Revenue Salaries Expense $ 30,000 Rent Expense $ 12,000 Interest Expense $ 3,000 Supplies Expense $ 7,000 Utilities Expense $ 6,000 Total $ 214,000 $ $ $ $ $ $ $ 17,000 5,000 3,000 All liabilities and Stochhodlers' 9,000 Equity are credit in nature. 30,000 Hence, has a credit balance 50,000 35,000 All expense are debit in nature 65,000 All income are credit in nature $ All expense are debit in nature. Hence, has a debit balance $ 214,000 Equipment = Total of Credit - Total of Debit (except Equipment) Equipment $ 60,800 ($ 214,000 - $ 153,200)