The following are the current month’s balances for Toys Galo

The following are the current month’s balances for Toys Galore, Inc. before preparing the trial balance

Accounts Payable $7,000
Revenue 6,000
Cash 2,000
Expenses 14,500
Furniture 11,000
Accounts Receivable 10,000
Common Stock ?
Notes Payable 6,500

What amount should be shown for Common Stock on the trial balance?
A) $39,000
B) $18,000
C) $13,500
D) $23,000

ANSWER

B .In a trial balance, the total of debits must match the total of credits. Therefore, the balance of Common Stock can be determined by totaling the debit and the credit balances and calculating the balancing amount.

Debit Credit
Cash $2,000
Accounts Receivable 10,000
Furniture 11,000
Accounts Payable $7,000
Notes Payable 6,500
Common Stock ?
Revenues 6,000
Expenses 14,500
Total $37,500 $19,500

Common Stock = $37,500 – $19,500 = $18,000