Best 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.
Full Answer
What is a trial balance?
If the stock has a par value, then the trial balance should show the par value of the issued shares as of the date of the trial balance. Any value received by the corporation for the shares in excess of the par value will be credited to an account named “paid-in capital in excess of par” or possibly “additional paid-in capital.”
What is total stockholders'equity?
The following are the current month's balances for Toys Galore, Inc. before preparing the trial balance What amount should be shown for Common Stock on the trial balance? Accounts Payable$6778 Revenue Cash Expenses lurTit Accounts Receivable 10167 Common Stock 16009 1889 14456 10791 Notes Payable 6694. Question: The following are the current ...
Which is a true statement regarding the accounting equation?
The following are the current month's balances for ABC Financial Services, Inc. before preparing the trial balance Accounts Payable Revenue Cash Expenses Furniture Accounts Receivable Common Stock Notes Payable $6,000 5,000 4,000 17,500 12,000 12,000 7,500 What amount should be shown for Common Stock on the trial balance? O A. $27,000 0 B ...
How much did a corporation originally issue common stock for $8?
The following are the current month's balances for ABC Financial Services, Inc. before preparing the trial balance. Accounts Payable Revenue Cash Expenses Furniture Accounts Receivable Common Stock Notes Payable $10,000 5,000 4,000 16,500 11,000 11,000 7,500 What amount should be shown for Common Stock on the trial balance? Which of the following
Where does common stock go on a trial balance?
On a company's balance sheet, common stock is recorded in the "stockholders' equity" section. This is where investors can determine the book value, or net worth, of their shares, which is equal to the company's assets minus its liabilities.Jan 21, 2022
Is stock a debit or credit in trial balance?
debit balanceOpening stock account which has a debit balance is recorded in the debit column of the trial balance. However, closing stock is not recorded in the trial balance and is given as additional information below the trial balance. It shows the balance of unsold goods from the opening stock and purchases.Sep 5, 2019
What should be included in a trial balance?
What Does a Trial Balance Include? A trial balance includes a list of all general ledger account totals. Each account should include an account number, description of the account, and its final debit/credit balance.
What amount is prepared for trial balance?
To prepare a trial balance, you will need the closing balances of the general ledger accounts. The trial balance is prepared after posting all financial transactions to the journals and summarizing them on the ledger statements.Mar 28, 2019
How do you show closing stock on a trial balance?
Closing stock appearing in the trial balance is shown on the asset side of balance sheet to show the status of assets with the firm. Was this answer helpful?
Is closing stock shown in trading account?
All direct expenses are recorded on the debit side of the trading account, while direct revenues are recorded on the credit side. Closing stock is also recorded on the credit side of the trading account, which is the revenue side.Sep 17, 2021
Which item is shown as debit balance in the trial balance?
Expenses and assets are accounted for as debit balances, while income and liabilities are considered credit balances.Sep 1, 2021
What is trial balance example?
Trial Balance is the report of accounting in which ending balances of different general ledger of the company are available; For example, utility expenses during a period include the payments of four different bills amounting $ 1,000, $ 3,000, $ 2,500 and $ 1,500, so in trial balance single utility expenses account ...
Is capital included in trial balance?
Capital balance is not included in a trial balance.