The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

Accounts Payable                         $1,500         Fees Earned                                 $3,600

Accounts Receivable                       1,800         Insurance Expense                          1,300

Prepaid Insurance                           2,000         Land                                              3,000

Cash                                              3,200         Wages Expense                              1,400

Dividends                                       1,200         Common Stock                              8,800

Prepare a trial balance. The total of the debits is

Question

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

Accounts Payable                         $1,500          Fees Earned                                 $3,600

Accounts Receivable                       1,800          Insurance Expense                          1,300

Prepaid Insurance                           2,000          Land                                              3,000

Cash                                              3,200          Wages Expense                              1,400

Dividends                                       1,200          Common Stock                              8,800

​

Prepare a trial balance. The total of the debits is

BlackTom AI · Accepted Answer

To tackle this problem, I’ll start by listing the accounts and classifying each as a debit or a credit, based on whether it normally carries a debit or credit balance.

First, group the accounts by their side:
- Debits (normal balance): Cash 3,200; Accounts Receivable 1,800; Prepaid Insurance 2,000; Land 3,000; Wages Expense 1,400; Insurance Expense 1,300; Dividends 1,200.
- Credits (normal balance): Accounts Payable 1,500; Fees Earned 3,600; Common Stock 8,800.

Next, sum the debit side: 3,200 + 1,800 + 2,000 + 3,000 + 1,400 + 1,300 + 1,200 = 13,900.

Then, sum the credit side: 1,500 + 3,600 + 8,800 = 13,900.

Therefore, the trial balance totals on both sides match at 13,900, which is the combined total of debits and credits in a balanced trial balance sheet.

Now, evaluate each answer option:
- Option "$9,700": This value does not reflect the correct sum of the debit balances. It would indicate an undercounting of one or more debit items or a misclassification, which contradicts the given balances.
- Option "$11,200": Similar issue here; this amount is neither the sum of the listed debit accounts nor the sum of the credits, signaling an arithmetic or listing error.
- Option "None of the other three": This would only be correct if neither of the other numbers matched the actual trial balance total. Since we’ve calculated and verified that 13,900 is the correct total, this option is false.
- Option "$13,900": This matches the computed total of the debits and also the credits, showing that the trial balance indeed balances.

In summary, the correct balancing total is 13,900, and the only option that reflects this accurate sum is "$13,900".

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