Question

the following are the account balances for facci company on december 31. assume all accounts have normal balances. if the company prepares a trial balance at this time, what will be the debit and credit totals?
cash $12,680
accounts receivable 2,600
supplies 680
building 7,460
land 10,700
accounts payable 15,500
retained earnings 6,570
dividends 400
fees earned 20,600
salaries expense 5,800
rent expense 2,000
utilities expense 350

a. $42,670
b. $63,270
c. $22,070
d. $85,340

Explanation:

Step1: Identify Debit Accounts

Debit accounts (assets, expenses, dividends) are: Cash, Accounts Receivable, Supplies, Building, Land, Salaries Expense, Rent Expense, Utilities Expense, Dividends.
Sum their balances:
\(12,680 + 2,600 + 680 + 7,460 + 10,700 + 5,800 + 2,000 + 350 + 400\)

Step2: Calculate Debit Total

First, add step by step:
\(12,680 + 2,600 = 15,280\)
\(15,280 + 680 = 15,960\)
\(15,960 + 7,460 = 23,420\)
\(23,420 + 10,700 = 34,120\)
\(34,120 + 5,800 = 39,920\)
\(39,920 + 2,000 = 41,920\)
\(41,920 + 350 = 42,270\)
\(42,270 + 400 = 42,670\) Wait, no, wait—wait, maybe I missed? Wait, no, let's check credit accounts too. Wait, credit accounts (liabilities, equity, revenue) are: Accounts Payable, Retained Earnings, Fees Earned.
Sum credit balances: \(15,500 + 6,570 + 20,600 = 15,500 + 6,570 = 22,070; 22,070 + 20,600 = 42,670\). Wait, but the options: a is 42,670. Wait, maybe I miscalculated debit. Wait, debit accounts: Cash (12,680), Accounts Receivable (2,600), Supplies (680), Building (7,460), Land (10,700), Salaries Expense (5,800), Rent Expense (2,000), Utilities Expense (350), Dividends (400). Let's sum again:

12,680 + 2,600 = 15,280

15,280 + 680 = 15,960

15,960 + 7,460 = 23,420

23,420 + 10,700 = 34,120

34,120 + 5,800 = 39,920

39,920 + 2,000 = 41,920

41,920 + 350 = 42,270

42,270 + 400 = 42,670. Yes. And credit: Accounts Payable (15,500), Retained Earnings (6,570), Fees Earned (20,600). 15,500 + 6,570 = 22,070; 22,070 + 20,600 = 42,670. So debit and credit totals are equal, $42,670? Wait, no, wait the options: a is $42,670. Wait, maybe the question is about debit (or credit) total? Wait, the question says "debit and credit totals"—but in trial balance, debit = credit. So let's check the options. Option a is $42,670. Let's confirm.

Wait, maybe I made a mistake in debit accounts. Let's list all accounts with their balances:

1. Cash: $12,680 (debit)
2. Accounts Receivable: $2,600 (debit)
3. Supplies: $680 (debit)
4. Building: $7,460 (debit)
5. Land: $10,700 (debit)
6. Accounts Payable: $15,500 (credit)
7. Retained Earnings: $6,570 (credit)
8. Dividends: $400 (debit)
9. Fees Earned: $20,600 (credit)
10. Salaries Expense: $5,800 (debit)
11. Rent Expense: $2,000 (debit)
12. Utilities Expense: $350 (debit)

Now, debit accounts: 1,2,3,4,5,8,10,11,12.

Sum debit: 12,680 + 2,600 + 680 + 7,460 + 10,700 + 400 + 5,800 + 2,000 + 350.

Let's group:

(12,680 + 2,600) = 15,280

(15,280 + 680) = 15,960

(15,960 + 7,460) = 23,420

(23,420 + 10,700) = 34,120

(34,120 + 400) = 34,520

(34,520 + 5,800) = 40,320

(40,320 + 2,000) = 42,320

(42,320 + 350) = 42,670. Yes.

Credit accounts: 6 (15,500), 7 (6,570), 9 (20,600).

15,500 + 6,570 = 22,070; 22,070 + 20,600 = 42,670. So debit = credit = $42,670. So the answer is a. $42,670.

Answer:

a. $42,670