Nelson Company began operations on December 1,2016.The following transactions were recorded in December:
1)The business received $9,000 cash from the issuance of common stock to its stockholders.
2)Provided services on account for $7,500.
3)Paid $4,500 cash for land.
4)Accrued $3,000 of salaries expenses.
5)Purchased $900 of supplies on account to be used in January.
6)Collected $3,900 from customers.
At December 31,2016,the total debits in the company's adjusted trial balance would be

Question

Quizplus · Accepted Answer

The total debits in the company's adjusted trial balance would include all the accounts that have been debited.

1) Common stock issuance results in a debit to the Cash account, so the amount of $9,000 is included. 
2) Services provided on account create a debit to Accounts Receivable, so the amount of $7,500 is included. 
3) The purchase of land results in a debit to the Land account, so the amount of $4,500 is included. 
4) The accrual of salaries expense means that Salaries Expense account is debited for the amount of $3,000. 
5) Purchasing supplies on account results in a debit to the Supplies account, so the amount of $900 is included. 
6) Collecting cash from customers increases the Cash account, so the amount of $3,900 is included.

Adding up all the debits, we get a total of $20,400, which is option B.

Nelson Company Began Operations on December 1,2016