The Trial Balance provided in the image is already balanced. The total debits equal the total credits, which means the accounting equation holds true for these accounts as of December 31, 2005.
Here is the verification of the totals:
1. Calculate Total Debits:
* Cash: $7,000
* Accounts Receivable: $3,000
* Office Supplies: $3,000
* Office Equipment: $5,000
* Rent Expense: $600
* Salaries Expense: $2,500
* Supplies Used: $1,200
* Utilities Expense: $700
Sum: $7,000 + $3,000 + $3,000 + $5,000 + $600 + $2,500 + $1,200 + $700 =
$23,000
2. Calculate Total Credits:
* Bank Loan: $5,000
* Accounts Payable: $1,000
* Common Stock: $10,000
* Consulting Revenue: $7,000
Sum: $5,000 + $1,000 + $10,000 + $7,000 =
$23,000
Since both sides equal $23,000, the trial balance is correct.
Final Answer:
The Trial Balance is balanced with total Debits of $23,000 and total Credits of $23,000.
Parent Tip: Review the logic above to help your child master the concept of trial balance worksheet example.
