The following debit balances appeared in a trial balance. Account Debit $ Motor vehicles 25 000 Inventory 6 500 Purchases 38 000 Wages 9 500 Rent 4 800 Insu...
Question 1 Report
The following debit balances appeared in a trial balance.
| Account | Debit $ |
|---|---|
| Motor vehicles | 25 000 |
| Inventory | 6 500 |
| Purchases | 38 000 |
| Wages | 9 500 |
| Rent | 4 800 |
| Insurance | 2 200 |
Answer Details
Correct answer: $86 000.
All the listed accounts carry debit balances. Adding them together:
Motor vehicles $25 000 + Inventory $6 500 + Purchases $38 000 + Wages $9 500 + Rent $4 800 + Insurance $2 200 = $86 000.
Motor vehicles is a non-current asset (debit). Inventory is a current asset (debit). Purchases is an expense (debit). Wages, rent and insurance are all expenses (debit). Every one belongs on the debit side of the trial balance.
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