Question

The following are the current? month's balances for ABC Financial? Services, Inc. before preparing the trial balance. Accounts Payable $ 7 comma 000 $7,000 Revenue 6 comma 000 6,000 Cash 3 comma 000 3,000 Expenses 16 comma 500 16,500 Furniture 10 comma 000 10,000 Accounts Receivable 11 comma 000 11,000 Common Stock ?? Notes Payable 4 comma 500 4,500 What amount should be shown for Common Stock on the trial? balance? A. $ 11 comma 500 $11,500 B. $ 23 comma 000 $23,000 C. $ 24 comma 000 $24,000 D. $ 44 comma 000 $44,000

Answer 1

Correct Answer is B. $23,000.
Let Common stock be X.
	Debit	Credit
Cash	$   3,000
Accounts Receivable	$ 11,000
Furniture	$ 10,000
Accounts Payable		$          7,000
Notes Payable		$          4,500
Common Stock		X
Revenue		$          6,000
Expense	$ 16,500
Total	$ 40,500	$17,500 + X
Let Common stock be X.
Debit Total = Credit Total
$40,500 = $17,500 + X
X = $40,500 - $17,500
X = $23,000
Therefore, Common Stock = $23,000