The trial balance for Parker Company is as follows:
- If the trial balance showed a balance of $16,000 in the Wages Expense account and a balance of $86,000 in the Advertising Fees Earned account,what would be the amount of A?
A)$126,000
B)$106,000
C)$136,000
D)$116,000

Question

The trial balance for Parker Company is as follows: 
- If the trial balance showed a balance of $16,000 in the Wages Expense account and a balance of $86,000 in the Advertising Fees Earned account,what would be the amount of A?
A)$126,000 
B)$106,000 
C)$136,000 
D)$116,000

Quizplus · Accepted Answer

The trial balance shows the total debits and credits in the ledger accounts. The difference between the two sides of the trial balance is called the net income or net loss. In this case, the total debits are $16,000 and the total credits are $86,000. The difference between the two sides is $70,000, which is the net income.

The Trial Balance for Parker Company Is as Follows