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17 July, 19:15

The following is a trial balance of Barnhart Company as December 31, Year 1: Account Title: Debit Credit Cash 12,500 Accounts Receivable 3,250 Accounts Payable 2,800 Common Stock 6,600 Retained Earnings 4,500 Service Revenue 7,450 Operating Expenses 5,100 Dividends 500 Totals 21,350 21,350 What is the total amount of assets that will be reported on the balance sheet prepared as of December 31, Year 1?

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  1. 17 July, 19:47
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    The total amount of assets is 15,750.

    Explanation:

    Reproducing the trial balance below for clarity:

    Account Title Debit Credit

    Cash 12,500

    Accounts Receivable 3,250

    Accounts Payable 2,800

    Common Stock 6,600

    Retained Earnings 4,500

    Service Revenue 7,450

    Operating Expenses 5,100

    Dividends 500

    Total 21,350 21,350

    Calculation of Total Assets:

    Total assets = Cash + Accounts Receivable

    = 12,500 + 3,250

    = 15,750

    Note that among the given accounts, accounts cash and accounts receivable are assets; accounts payable is a liability; common stock and retained earnings are part of the capital; service revenue is a form of revenue; while operating expenses and dividends are expenses.
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