Given the following T-account balances at the end of the period, which of the following statements is correct regarding the trial balance?Cash: Debit \$5,000; Credit \$2,000Accounts Payable: Debit \$1,000; Credit \$3,500Service Revenue: Debit \$0; Credit \$4,000What is the correct ending balance for the Cash account to be reported on the trial balance?

• A. \$3,000 credit
• B. \$3,000 debit
• C. \$7,000 debit
• D. \$2,000 credit

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of a T-account. A T-account is a visual representation of an account in the general ledger, showing debits on the left side and credits on the right side. The ending balance is calculated by subtracting the smaller side from the larger side.
2. Step 2: Analyze the Cash account. The Cash account has a Debit balance of \$5,000 and a Credit balance of \$2,000. To find the ending balance, subtract the Credit side from the Debit side.
3. Step 3: Use the formula for calculating the ending balance: \( \text{Ending Balance} = \text{Total Debits} - \text{Total Credits} \). For the Cash account, this would be \( 5000 - 2000 \).
4. Step 4: Determine the nature of the ending balance. Since the Debit side is larger than the Credit side, the ending balance will be a Debit balance.
5. Step 5: Report the ending balance of the Cash account on the trial balance. The trial balance lists the ending balances of all accounts, ensuring that total debits equal total credits.