Update your trial balance with the following accounts and balances and then answer the questions that follow.

Cash	139,000	Salaries payable	7,400
Accounts payable	49,500	Service revenue	235,300
Common stock	144,400	Accounts receivable	146,000
Rent expense	35,200	Advertising expense	49,600
Salaries expense	122,400	Retained earnings	91,800
Prepaid rent	39,000	Dividends	9,800
Supplies	30,400	Notes payable	43,000

Required: 1. What are the total debits and credits on your revised trial balance?

2. Assuming the Retained Earnings balance was entered on the wrong side of the trial balance, what would the total debits and credits be?

3. If a trial balance is in balance, one can assume that all accounting transactions have been recorded for the period.

multiple choice

• True, if all transactions are recorded then the trial balance will be in balance.

• False, a trial balance reflects that every recorded transaction has equal debits equal credits, not that the entries are complete or correct.