The unadjusted trial balance for a company has total debit and credit column totals of$148,000. The Adjustments columns contain entries for the following:Office supplies used during the period, $2,650. Expiration of prepaid rent, $1,700.Accrued salaries expense, $3,500. Depreciation expense, $1,625.Accrued service revenues, $2,500.The Adjusted Trial Balance columns total to:
A)$159,975.
B)$148,000.
C)$155,625.
D)$151,275.
E)$136,025.

Question

Quizplus · Accepted Answer

To find the total of the Adjusted Trial Balance columns, we need to add the debit and credit columns of the unadjusted trial balance with the adjustments made. 
Debit total of unadjusted trial balance = Credit total of unadjusted trial balance = $148,000 
Adjustments: 
- Office supplies used during the period ($2,650) decreases assets (Office Supplies) and increases expenses (Supplies Expense). 
- Expiration of prepaid rent ($1,700) decreases assets (Prepaid Rent) and increases expenses (Rent Expense). 
- Accrued salaries expense ($3,500) increases expenses (Salaries Expense) and increases liabilities (Accrued Expenses). 
- Depreciation expense ($1,625) decreases assets (Equipment) and increases expenses (Depreciation Expense). 
- Accrued service revenues ($2,500) increases revenues (Service Revenue) and increases assets (Accrued Revenue).

We can now compute the total of the Adjusted Trial Balance columns:

Debit total = $148,000 - $2,650 - $1,700 - $1,625 - $3,500 + $2,500 = $140,025 
Credit total = $148,000 + $2,650 + $1,700 + $1,625 + $2,500 = $156,475

Therefore, the total of the Adjusted Trial Balance columns is:

Debit total = Credit total = $155,625

Hence, the best choice is C.

The Unadjusted Trial Balance for a Company Has Total Debit