The unadjusted trial balance for Sierra Corp. is shown below.

\begin{tabular}{|c|c|c|}
\hline
\multicolumn{3}{|c|}{\textbf{SIERRA CORPORATION}} \\
\multicolumn{3}{|c|}{\textbf{Trial Balance}} \\
\multicolumn{3}{|c|}{\textbf{October 31, 2022}} \\
\hline & \textbf{Debit} & \textbf{Credit} \\
\hline Cash & \[tex]$15,200 & \\
\hline Supplies & 2,500 & \\
\hline Prepaid Insurance & 600 & \\
\hline Equipment & 5,000 & \\
\hline Notes Payable & & \$[/tex]5,000 \\
\hline Accounts Payable & & 2,500 \\
\hline Unearned Service Revenue & & 1,200 \\
\hline Common Stock & & 10,000 \\
\hline Retained Earnings & & 0 \\
\hline Dividends & 500 & \\
\hline Service Revenue & & 10,000 \\
\hline Salaries and Wages Expense & 4,000 & \\
\hline Rent Expense & 900 & \\
\hline & \[tex]$28,700 & \$[/tex]28,700 \\
\hline
\end{tabular}



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.