Based on the following information, what would be the total on the Credit side of a post closing trial balance, assuming all accounts have a normal balance?
$$\begin{array} { l r l r }
\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \
\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,718 \
\text { Office supplies } & 2,625 & \text { Rent expense } & 3,673 \
\text { Land } & 37,153 & \text { Salaries expense } & 6,642 \
\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \
\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \
\text { Common stock } & 54,490 & \text { Retained Earnings } & ?
\end{array}$$

Question

Based on the following information, what would be the total on the Credit side of a post closing trial balance, assuming all accounts have a normal balance?
$$\begin{array} { l r l r } 
\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \
\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,718 \
\text { Office supplies } & 2,625 & \text { Rent expense } & 3,673 \
\text { Land } & 37,153 & \text { Salaries expense } & 6,642 \
\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \
\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \
\text { Common stock } & 54,490 & \text { Retained Earnings } & ?
\end{array}$$

Quizplus · Accepted Answer

The total on the Credit side of a post-closing trial balance includes only permanent accounts. The credit accounts are Accounts Payable ($6,463), Common Stock ($54,490), and Retained Earnings. Retained Earnings can be calculated as the difference between total debits and total credits before closing. Total debits are $74,800, so Retained Earnings must be $13,847 to balance the credits to $74,800.

Based on the Following Information, What Would Be the Total