Financial Accounting

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What Can You Solve For with an Unadjusted Trial Balance?


Review the unadjusted trial balance below.

Unadjusted Trial Balance DEBIT CREDIT
Cash \$100,000
Accounts Receivable \$40,000
Prepaid Rent \$10,000
Equipment, net \$380,000
Accumulated Depreciation, Equipment \$80,000
Accounts Payable \$40,000
Note Payable \$100,000
Common Stock \$10,000
Retained Earnings \$75,000
Service Revenues \$575,000
Cost of Goods Sold \$150,000
Rent Expense \$50,000
Salaries & Wages Expense \$100,000
Other Operating Expenses \$40,000
Interest Expense \$10,000
TOTALS \$880,000 \$880,000

What can you know about this firm by reviewing this Unadjusted Trial Balance?

You can compute

and solve for

In this firm, total assets would be