Answer :
Let's solve the problem step-by-step to ensure that both the Debit and Credit sides of the unadjusted trial balance are equal.
1. List the Debits:
- Cash: \[tex]$15,200 - Supplies: \$[/tex]2,500
- Prepaid Insurance: \[tex]$600 - Equipment: \$[/tex]5,000
- Dividends: \[tex]$500 - Salaries and Wages Expense: \$[/tex]4,000
- Rent Expense: \[tex]$900 2. Sum the Debits: Add all the debit amounts together: \[ \$[/tex]15,200 + \[tex]$2,500 + \$[/tex]600 + \[tex]$5,000 + \$[/tex]500 + \[tex]$4,000 + \$[/tex]900 = \[tex]$28,700 \] 3. List the Credits: - Notes Payable: \$[/tex]5,000
- Accounts Payable: \[tex]$2,500 - Unearned Service Revenue: \$[/tex]1,200
- Common Stock: \[tex]$10,000 - Retained Earnings: \$[/tex]0
- Service Revenue: \[tex]$10,000 4. Sum the Credits: Add all the credit amounts together: \[ \$[/tex]5,000 + \[tex]$2,500 + \$[/tex]1,200 + \[tex]$10,000 + \$[/tex]0 + \[tex]$10,000 = \$[/tex]28,700
\]
5. Check if the sums match:
The total debits sum up to \[tex]$28,700 and the total credits sum up to \$[/tex]28,700.
Thus, the unadjusted trial balance is:
[tex]\[ \text{Total Debits} = \$28,700 \][/tex]
[tex]\[ \text{Total Credits} = \$28,700 \][/tex]
Both sides are equal, confirming that the trial balance is correctly balanced.
1. List the Debits:
- Cash: \[tex]$15,200 - Supplies: \$[/tex]2,500
- Prepaid Insurance: \[tex]$600 - Equipment: \$[/tex]5,000
- Dividends: \[tex]$500 - Salaries and Wages Expense: \$[/tex]4,000
- Rent Expense: \[tex]$900 2. Sum the Debits: Add all the debit amounts together: \[ \$[/tex]15,200 + \[tex]$2,500 + \$[/tex]600 + \[tex]$5,000 + \$[/tex]500 + \[tex]$4,000 + \$[/tex]900 = \[tex]$28,700 \] 3. List the Credits: - Notes Payable: \$[/tex]5,000
- Accounts Payable: \[tex]$2,500 - Unearned Service Revenue: \$[/tex]1,200
- Common Stock: \[tex]$10,000 - Retained Earnings: \$[/tex]0
- Service Revenue: \[tex]$10,000 4. Sum the Credits: Add all the credit amounts together: \[ \$[/tex]5,000 + \[tex]$2,500 + \$[/tex]1,200 + \[tex]$10,000 + \$[/tex]0 + \[tex]$10,000 = \$[/tex]28,700
\]
5. Check if the sums match:
The total debits sum up to \[tex]$28,700 and the total credits sum up to \$[/tex]28,700.
Thus, the unadjusted trial balance is:
[tex]\[ \text{Total Debits} = \$28,700 \][/tex]
[tex]\[ \text{Total Credits} = \$28,700 \][/tex]
Both sides are equal, confirming that the trial balance is correctly balanced.