Consider the following information from a company's unadjusted trial balance at December December 31, 2015. All accounts have normal balances.

Accounts receivable $5,500
Accounts payable 700
Cash 1,800
Service revenue 6,800
Common stock 5,000
Equipment 5,900
Insurance expense 450
Land 4,800
Notes payable, due 2018 5,000
Notes receivable matures 2016 1,300
Prepaid Insurance 450
Rent expense 1,450
Retained earnings, January 1, 2015, 7,950
Salaries and Wages expense 3,800
What is the total of the debit side of the unadjusted trial balance?

a. $20,450.

b. $16,950.

c. $25,450.

d. $19,750.

c. $25,450.

Explanation:

All the expenses and asset accounts have debit balances so, the total debit value of unadjusted trial balance can be calculated by adding all the expense and asset account balances.

                                                         $

Land                                              4,800

Equipment                                    5,900

Accounts receivable                    5,500

Cash                                              1,800

Notes receivable matures 2016  1,300

Prepaid Insurance                          450

Insurance expense                         450

Rent expense                               1,450

Salaries and Wages expense     3,800

Total Debit Balances                   25,450                                                      

Following accounts are equity and liability accounts, these accounts are credit in nature.

Service revenue                                 6,800

Accounts payable                                 700

Common stock                                    5,000

Notes payable, due 2018                   5,000        

Retained earnings, January 1, 2015   7,950

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explanation:

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