Nelson Company began operations on December 1, Year 1. The following transactions and adjustments were recorded in December and posted to the company's ledger accounts:1)Acquired $9,000 cash from the issue of common stock to its stockholders.2)Provided services on account for $7,500.3)Paid $4,500 cash for land.4)Owed $3,000 of salaries expenses to employees for work done in December that will be paid during January.5)Purchased $900 of supplies on account to be used in January.6)Collected $3,900 from customers. What is the total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1?
A)$12,000
B)$20,400
C)$6,900
D)$28,800

Question

Quizplus · Accepted Answer

1) Cash is debited for $9,000 (Transaction #1).
2) Accounts receivable is debited for $7,500 (Transaction #2).
3) Land is debited for $4,500 (Transaction #3).
4) Salaries expense is debited for $3,000 (Adjustment #1).
5) Supplies are debited for $900 (Transaction #5).
6) No debit is recorded for the collection of accounts receivable (Transaction #6).

Total of debit account balances = $9,000 + $7,500 + $4,500 + $3,000 + $900 = $20,400.

Therefore, the correct answer is B.

Nelson Company Began Operations on December 1, Year 1