Wolfpack Construction has the following account balances at the end of the year: Cash \$12,000; Accounts Receivable \$8,000; Equipment \$25,000; Accounts Payable \$5,000; Common Stock \$30,000; Retained Earnings \$10,000. What is the total of the debit column in the trial balance?

• A. \$35,000
• B. \$55,000
• C. \$50,000
• D. \$45,000

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the structure of a trial balance. A trial balance lists all accounts and their balances, separating them into debit and credit columns. Assets typically have debit balances, while liabilities and equity have credit balances.
2. Step 2: Identify the accounts with debit balances. In this problem, the accounts with debit balances are Cash (\$12,000), Accounts Receivable (\$8,000), and Equipment (\$25,000). These are asset accounts, which are recorded on the debit side.
3. Step 3: Add the debit balances together. To find the total of the debit column, sum the balances of Cash, Accounts Receivable, and Equipment. Use the formula: $(\mathrm{Cash}+\mathrm{Accounts} \mathrm{Receivable}+\mathrm{Equipment})$
4. Step 4: Verify that no other accounts are listed as debits. In this problem, only the asset accounts are debits, and liabilities and equity accounts (Accounts Payable, Common Stock, Retained Earnings) are credits.
5. Step 5: Confirm the total of the debit column matches the sum of the identified debit balances. This ensures the trial balance is accurate and follows the accounting equation.