Question

Based on the account balances below, what is the total of the debit and credit columns of the adjusted trial balance?

Service revenue $5630 Equipment $7480
Cash 2745 Prepaid insurance 1375
Unearned service revenue 5370 Depreciation expense 760
Salaries and wages expense 1220 Accum. depreciation 1450
Common stock 570 Retained earnings 560
$11600

$13120

$13580

$12130

Answer 1

The total of the debit and credit columns of the adjusted trial balance is $13580 each, indicating that the trial balance is balanced.

Step-by-step explanation:

To calculate the total of the debit and credit columns of the adjusted trial balance, you should add up each of the balances given in the question separately for debits and credits. Debits include Equipment ($7480), Cash ($2745), Prepaid insurance ($1375), Depreciation expense ($760), and Salaries and wages expense ($1220). Credits include Service revenue ($5630), Unearned service revenue ($5370), Accumulated depreciation ($1450), Common stock ($570), and Retained earnings ($560).

Adding up the debit balances: $7480 (Equipment) + $2745 (Cash) + $1375 (Prepaid insurance) + $760 (Depreciation expense) + $1220 (Salaries and wages expense) = $13580.

Adding up the credit balances: $5630 (Service revenue) + $5370 (Unearned service revenue) + $1450 (Accumulated depreciation) + $570 (Common stock) + $560 (Retained earnings) = $13580.

Thus, both the total debit and credit columns of the adjusted trial balance equal $13580, confirming that the trial balance is in balance.