The trial balance for Parker Company is as follows:
-If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $85,000 in the Advertising Fees Earned account,what would be the amount of the Mike Parker,Withdrawals account?
A)$75,000
B)$53,000
C)$35,000
D)$63,000

Question

The trial balance for Parker Company is as follows: 
-If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $85,000 in the Advertising Fees Earned account,what would be the amount of the Mike Parker,Withdrawals account?
A)$75,000 
B)$53,000 
C)$35,000 
D)$63,000

Quizplus · Accepted Answer

The trial balance does not provide any information about the amount of withdrawals made by Mike Parker. The correct approach to find the balance in the Mike Parker,Withdrawals account is to prepare an income statement and a statement of retained earnings to determine the total amount of net income earned by the company and the portion distributed to the owner as withdrawals. Without this information, it is impossible to determine the balance in the Mike Parker,Withdrawals account. Therefore, the answer is C, which indicates that the information given is insufficient to answer the question.

The Trial Balance for Parker Company Is as Follows