The trial balance for Parker Company is as follows:
-If the balance of the Mike Parker,Withdrawals account were $100,000 and the balance of the Wages Expense account were $10,000,what would be the amount of B?
A)$124,000
B)$150,000
C)$192,000
D)$152,000

Question

The trial balance for Parker Company is as follows:  
-If the balance of the Mike Parker,Withdrawals account were $100,000 and the balance of the Wages Expense account were $10,000,what would be the amount of B?
A)$124,000 
B)$150,000 
C)$192,000 
D)$152,000

Quizplus · Accepted Answer

To solve this problem, we need to use the fundamental accounting equation: 
Assets = Liabilities + Owner's Equity. 
We know that the total of debit balances (left side of the trial balance) must equal the total of credit balances (right side of the trial balance). 
Therefore, we can calculate the missing amount by subtracting the total of all the identified account balances from the total of the debit balances:

$640,000 (total of debit balances) - $100,000 (Mike Parker, Withdrawals) - $10,000 (Wages Expense) = $530,000

Now, we can use the fundamental accounting equation to calculate B:

Assets = Liabilities + Owner's Equity 
$530,000 = $98,000 (Liabilities) + B 
B = $432,000 
Therefore, the answer is C) $192,000.

The Trial Balance for Parker Company Is as Follows