Given the following account balances from the general ledger of Zips Storage at January 1, 2024, which of the following statements about the trial balance is correct?Cash: \$5,000Accounts Receivable: \$2,500Equipment: \$10,000Accounts Payable: \$3,000Owner's Capital: \$14,500What should be the total of the debit column in the trial balance?

• A. \$14,500
• B. \$13,500
• C. \$15,500
• D. \$17,500

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of a trial balance. A trial balance is a list of all accounts and their balances at a specific point in time, categorized into debit and credit columns. The total of the debit column must equal the total of the credit column to ensure the accounting equation is balanced.
2. Step 2: Identify which accounts belong to the debit column. Assets such as Cash, Accounts Receivable, and Equipment are typically recorded in the debit column because they represent resources owned by the business.
3. Step 3: Add the balances of the debit accounts. Using the given data: Cash (\$5,000), Accounts Receivable (\$2,500), and Equipment (\$10,000), sum these amounts to calculate the total debit column. Use the formula: $(\mathrm{5,000}+\mathrm{2,500}+\mathrm{10,000})$
4. Step 4: Verify the credit column. Accounts Payable (\$3,000) and Owner's Capital (\$14,500) are recorded in the credit column because they represent liabilities and equity, respectively. The total credit column should also be calculated to ensure it matches the debit column.
5. Step 5: Confirm the trial balance totals. Compare the calculated debit column total with the credit column total to ensure they are equal, which validates the accuracy of the trial balance.