The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns contain entries for the following: (1) Office supplies used during the period, $1,200. (2) Expiration of prepaid rent, $700. (3) Accrued salaries expense, $500. (4) Depreciation expense, $800. (5) Accrued repair service fees receivable, $400. The Adjusted Trial Balance columns total
A) $80,400
B) $84,000
C) $85,700
D) $85,900
E) $87,600

Question

Quizplus · Accepted Answer

The total of the Adjusted Trial Balance columns is equal to the total of the Unadjusted Trial Balance columns plus the net amount of the adjustments. The net amount of the adjustments is the total of the debit adjustments minus the total of the credit adjustments. In this case, the total of the debit adjustments is $1,200 + $800 = $2,000, and the total of the credit adjustments is $700 + $500 + $400 = $1,600. Therefore, the net amount of the adjustments is $2,000 - $1,600 = $400. The total of the Adjusted Trial Balance columns is therefore $84,000 + $400 = $85,700.

The Unadjusted Trial Balance Columns of a Work Sheet Total