Given the following balances, the total debits in the trial balance would equal:
Equipment $ 37,000
Accounts Payable 2,000
Sales 49,000
Accumulated Depreciation 4,000
Accounts Receivable 7,000
Retained Earnings 16,000
Salary Expense 6,000
Cash 8,000
Share Capital 11,000
Cost of Goods Sold 24,000
To determine the total debits in the trial balance, you need to understand which account balances represent debits and which represent credits. In accounting, debits are used to record increases in assets, expenses, and dividends, while credits are used to record increases in liabilities, equity, and revenues.
From the given account balances, we can identify the following debits:
1. Equipment: $37,000 (increase in assets, therefore a debit)
2. Accounts Payable: $2,000 (increase in liabilities, therefore a credit)
3. Sales: $49,000 (increase in revenues, therefore a credit)
4. Accumulated Depreciation: $4,000 (depreciation is an expense, therefore a debit)
5. Accounts Receivable: $7,000 (increase in assets, therefore a debit)
6. Retained Earnings: $16,000 (increase in equity, therefore a credit)
7. Salary Expense: $6,000 (expense, therefore a debit)
8. Cash: $8,000 (increase in assets, therefore a debit)
9. Share Capital: $11,000 (increase in equity, therefore a credit)
10. Cost of Goods Sold: $24,000 (expense, therefore a debit)
Now, we can calculate the total debits by adding all the debit balances:
$37,000 (Equipment) + $4,000 (Accumulated Depreciation) + $7,000 (Accounts Receivable) + $6,000 (Salary Expense) + $8,000 (Cash) + $24,000 (Cost of Goods Sold) = $86,000
Therefore, the total debits in the trial balance would equal $86,000.