A company has the following trial balance (each account has a positive normal ba

Question

A company has the following trial balance (each account has a positive normal balance): Accounts Payable Accounts Receivable Automobiles Buildings Common Stock Cash Service Fees Earned Dividends Insurance Expense Interest Expense Interest Payable Land Notes Payable Supplies Supplies Expense Rent Expense Retained Earnings Wages Expense Wages Payable 12,300 21,230 48,000 60,000 25,000 2,460 17,420 1,500 300 200 200 40,000 20,000 1,680 5,320 10,355 116,900 1,245 470 Calculate the total equity for this company.

Explanation / Answer

particulars Debit Credit Income Statement Accounts Payable          12,300 Service Fees Earned 17420 Accounts Receivable         21,230 Less: Expenses Automobiles         48,000 Insurance Expense             300 Buildings         60,000 Interest Expense             200 Common Stock          25,000 Supplies Expense          5,320 Cash           2,460 Rent Expense        10,355 Service Fees Earned          17,420 Wages Expense          1,245              17,420 Dividends           1,500 Net Income                        -   Insurance Expense              300 Interest Expense              200 Total equity Interest Payable               200 Common Stock $          25,000 Land         40,000 Add: Retained earnings          116,900 Notes Payable          20,000 Add: Net Income                     -   Supplies           1,680 Less: Dividends            (1,500) $        115,400 Supplies Expense           5,320 Total Equity $        140,400 Rent Expense         10,355 Retained Earnings        116,900 Wages Expense           1,245 Wages Payable               470 Total $   192,290 $    192,290

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