Montauk Oil Co. reports these account balances at December 31, 2010
$$\begin{array} { | l | r | }
\hline \text { Accounts Payable } & \$ 110,000 \
\hline \text { Land } & \$ 200,000 \
\hline \text { Notes Payable } & \$ 260,000 \
\hline \text { Equipment } & \$ 160,000 \
\hline \text { Cash } & \$ 80,000 \
\hline \text { Accounts Receivable } & \$ 100,000 \
\hline \text { Buildings } & \$ 240,000 \
\hline \text { Share Capital } & \$ 340,000 \
\hline \text { Retained Earnings } & \$ 70,000 \
\hline
\end{array}$$
On January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 of its accounts payable.
-Refer to the above data. In a trial balance prepared at January 3, 2011, the total of the debit column is:

Question

Montauk Oil Co. reports these account balances at December 31, 2010
$$\begin{array} { | l | r | } 
\hline \text { Accounts Payable } & \$ 110,000 \
\hline \text { Land } & \$ 200,000 \
\hline \text { Notes Payable } & \$ 260,000 \
\hline \text { Equipment } & \$ 160,000 \
\hline \text { Cash } & \$ 80,000 \
\hline \text { Accounts Receivable } & \$ 100,000 \
\hline \text { Buildings } & \$ 240,000 \
\hline \text { Share Capital } & \$ 340,000 \
\hline \text { Retained Earnings } & \$ 70,000 \
\hline
\end{array}$$
On January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 of its accounts payable.
-Refer to the above data. In a trial balance prepared at January 3, 2011, the total of the debit column is:

Quizplus · Accepted Answer

The total of the debit column in a trial balance is the sum of all the debit balances in the accounts. In this case, the debit balances are:Accounts Receivable $100,000Land $200,000Equipment $160,000Cash $80,000Buildings $240,000Share Capital $340,000The total of these debit balances is $1,120,000. However, on January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 of its accounts payable. This means that the debit balance of Accounts Receivable will decrease by $50,000 and the debit balance of Accounts Payable will decrease by $20,000. Therefore, the total of the debit column in a trial balance prepared at January 3, 2011, will be $1,120,000 - $50,000 - $20,000 = $1,050,000.

Montauk Oil Co On January 2, 2011, Montauk Oil Collected $50,000 of Its