Question

The following account balances were listed on the trial balance of Huan Company at the end of the period: Account Balance Accounts Payable $ 30,600 Cash ? Common Stock 30,000 Equipment 13,500 Land 45,000 Notes Payable 60,000 What is the correct balance in the cash account? $57,900 O $31,500 $2,100 O $62,100

Answer 1

Q7. Option(D). $62,100 is the correct answer.;

Q8. Option(C). $470,000 is the correct answer.

Workings:

Liabilities $ 230,000 Owners' Equity $ 220,000 Credit Huan Company Trial Balance Account Particulars Debit Cash $ 62,100 Land $ 45,000 Equipment $ 13,500 Accounts Payable $ Notes Payable $ Common Stock $ Total $ 120,600 $ Q8. Assets Before Adjustments $ 450,000 Adjustments Supplies +$ 26,000 Cash -$ 6,000 Accounts Payable After Adjustments $ 470,000 +$ 20,000 $ 250,000 $ 220,000 30,600 60,000 30,000 120,600 Cash-Debit Balance; Land-Debit Balance; Equipment-Debit Balance; Accounts Payable-Credit Balance; Notes Payable-Credit Balance; Common Stock-Credit Balance;

Trial Balance:

• · A Trial Balance is a list of accounts and their balances at a given time.
• · It prepares at the end of an accounting period.
• · Debit balances appear in the left column and Credit balances appear in the right column.
• · It ensures an arithmetical accuracy of debit and credit side.
• · It’s a necessary checkpoint for uncovering certain types of errors in journalizing and posting.

Accounting Equation:

· Assets = Liabilities + Stockholders’ Equity

Account Type	Normal balance	To be increased	To be decreased
Assets	Debit	Debit	Credit
Liabilities	Credit	Credit	Debit
Equity	Credit	Credit	Debit
Revenue	Credit	Credit	Debit
Expenses	Debit	Debit	Credit

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