The following are the current month's balances for toys galore, inc. before preparing the trial balance. accounts payable $ 5,000 revenue 5,000 cash 5,000 expenses 17,500 furniture 10,000 accounts receivable 12,000 common stock ? notes payable 5,500. what amount should be shown for common stock on the trial? balance?

common stock = 29,000 credit

Explanation:

We will calculate the debits and credit and solve for common stocks:

Assets and expenses (debits)

cash                             5,000

accounts receivable  12,000

furniture                      10,000

expenses                   17, 500  

Total                            44,500

Now the credits which is liabilities, equity and revenues:

account payable 5,000

note payable       5,500

revenues             5,000

total                    15,500

To balance common stock must made up the difference between debit and credit:

44,500-  15,500 = 29,000

Notes: from the expand accounting equation we can conclude which has debit and credit balance:

assets + expenses = laiblities + equity + revenues

this side is debit              while this is credit