Zen Hatha opened a Yoga Studio and during a short period as a dealer completed these transactions:(1)Started the yoga studio, Asha Yoga Studio, by investing $50,000 in cash and equipment with a $28,000 fair value.(2)Purchased land valued at $35,000 and a small building valued at $80,000; paid$30,000 cash and signed a note payable, agreeing to pay the balance over a period of years.(3)Purchased office supplies on credit, $100.(4)Zen Hatha contributed his personal automobile, which had a $12,000 fair value, for exclusive use in the business.(5)Paid the yoga instructor salary, $500.(6)Completed monthly yoga classes for the value of $6,500 cashPaid $650 cash for a magazine advertisement.(8)Paid for the supplies purchased in transaction (3).(9)Purchased new yoga mats for the business, paying $300 cashCompleted a yoga assessment and billed the client $400.(11)Zen Hatha withdrew $200 from the business to pay personal expensesReceived payment in full for the appraisal of transaction (10).What was the total of the debit balances shown in the trial balance prepared after these transactions were posted?
A)$152,300.
B)$243,620.
C)$173,950.
D)$181,900.
E)$167,700.

Question

Quizplus · Accepted Answer

To calculate the total debit balances, we need to add up all the transactions that have a debit entry in the accounts. 
(1) Cash and equipment - $50,000 
(2) Land - $35,000 Building - $80,000 Note Payable - $45,000 (30,000 paid in cash and $15,000 remaining) 
(3) Office Supplies - $100 
(4) Automobile - $12,000 
(5) Salary Expense - $500 
(6) Cash - $6,500 
(7) Advertising Expense - $650 
(8) Accounts Payable - $100 
(9) Yoga mats - $300 
(10) Accounts Receivable - $400 
(11) Withdrawal - $200

Total debit balances = $50,000 + $35,000 + $80,000 + $45,000 + $100 + $12,000 + $500 + $6,500 + $650 + $100 + $300 + $400 + $200

= $181,900.

Therefore, the correct answer is D.

Zen Hatha Opened a Yoga Studio and During a Short