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SMART TOUCH LEARNINGPost-Closing Trial BalanceDecember 31, 2016BalanceAccount Title Debit CreditCash 26,500 Accounts Receivable 5,100 Office Supplies 300 Prepaid Insurance 8,800 Prepaid Rent 8,800 Furniture 31,100 Accumulated Depreciation--Furniture 10,600Accounts Payable 14,100Salaries Payable 2,100Utilities Payable 1,000Interest Payable 1,400Unearned Revenue 26,600Bright, Capital 24,800Total 80,600 80,600

Question

SMART TOUCH LEARNINGPost-Closing Trial BalanceDecember 31, 2016BalanceAccount Title Debit CreditCash 26,500 Accounts Receivable 5,100 Office Supplies 300 Prepaid Insurance 8,800 Prepaid Rent 8,800 Furniture 31,100 Accumulated Depreciation--Furniture 10,600Accounts Payable 14,100Salaries Payable 2,100Utilities Payable 1,000Interest Payable 1,400Unearned Revenue 26,600Bright, Capital 24,800Total 80,600 80,600

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Solution

The text you provided is a post-closing trial balance for a company called Smart Touch Learning. This document is used in accounting to ensure that the total amount of debit balances in the general ledger equals the total amount of credit balances.

Here's a breakdown of the information:

  • Cash: $26,500 (Debit)
  • Accounts Receivable: $5,100 (Debit)
  • Office Supplies: $300 (Debit)
  • Prepaid Insurance: $8,800 (Debit)
  • Prepaid Rent: $8,800 (Debit)
  • Furniture: $31,100 (Debit)

These are the company's assets. They are on the debit side because assets increase with a debit.

  • Accumulated Depreciation--Furniture: $10,600 (Credit)
  • Accounts Payable: $14,100 (Credit)
  • Salaries Payable: $2,100 (Credit)
  • Utilities Payable: $1,000 (Credit)
  • Interest Payable: $1,400 (Credit)
  • Unearned Revenue: $26,600 (Credit)
  • Bright, Capital: $24,800 (Credit)

These are the company's liabilities and owner's equity. They are on the credit side because liabilities and owner's equity increase with a credit.

The total for both the debit and credit columns is $80,600, which means the books are balanced.

This problem has been solved

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Using the post-closing trial balance, calculate the total assets, liabilities, and equity, and enter those amounts in the basic accounting equation.SMART TOUCH LEARNINGPost-Closing Trial BalanceDecember 31, 2016BalanceAccount Title Debit CreditCash 26,500 Accounts Receivable 5,100 Office Supplies 300 Prepaid Insurance 8,800 Prepaid Rent 8,800 Furniture 31,100 Accumulated Depreciation--Furniture 10,600Accounts Payable 14,100Salaries Payable 2,100Utilities Payable 1,000Interest Payable 1,400Unearned Revenue 26,600Bright, Capital 24,800Total 80,600 80,600

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