The following are the current? month\'s balances for ABC Financial? Services, In
ID: 2406929 • Letter: T
Question
The following are the current? month's balances for ABC Financial? Services, Inc. before preparing the trial balance. Accounts Payable $ 7 comma 000 $7,000 Revenue 6 comma 000 6,000 Cash 3 comma 000 3,000 Expenses 16 comma 500 16,500 Furniture 10 comma 000 10,000 Accounts Receivable 11 comma 000 11,000 Common Stock ?? Notes Payable 4 comma 500 4,500 What amount should be shown for Common Stock on the trial? balance? A. $ 11 comma 500 $11,500 B. $ 23 comma 000 $23,000 C. $ 24 comma 000 $24,000 D. $ 44 comma 000 $44,000
Explanation / Answer
Correct Answer is B. $23,000. Let Common stock be X. Debit Credit Cash $ 3,000 Accounts Receivable $ 11,000 Furniture $ 10,000 Accounts Payable $ 7,000 Notes Payable $ 4,500 Common Stock X Revenue $ 6,000 Expense $ 16,500 Total $ 40,500 $17,500 + X Let Common stock be X. Debit Total = Credit Total $40,500 = $17,500 + X X = $40,500 - $17,500 X = $23,000 Therefore, Common Stock = $23,000
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