The trial balance for Parker Company is as follows: If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $85,000 in the Advertising Fees Earned account,what would be the amount of the Mike Parker,Withdrawals account?
A)$75,000
B)$53,000
C)$35,000
D)$63,000

Question

The trial balance for Parker Company is as follows:  If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $85,000 in the Advertising Fees Earned account,what would be the amount of the Mike Parker,Withdrawals account?
A)$75,000 
B)$53,000 
C)$35,000 
D)$63,000

Quizplus · Accepted Answer

The trial balance is in balance, which means that the total debits equal the total credits. Therefore, the total debits must equal the total credits even after including the balance in the Wages Expense and Advertising Fees Earned accounts. Assuming the Wages Expense account has a debit balance and the Advertising Fees Earned account has a credit balance, the total debits must be higher than the total credits. In order to balance out the trial balance, the amount of the owner's withdrawals must be a credit balance. Option C, $35,000, is the only credit balance listed among the answer choices.

The Trial Balance for Parker Company Is as Follows