The adjusted trial balance of Fargo Company as of July 31, 2017 is presented below. (Read that again, think
about what that means about where Fargo is in the accounting cycle.) Notice that the total debits and credits
for each account are indicated (including the beginning balances) rather than the usual account balance. For
example, the cash account had transactions which resulted in a total of $67,900 debits (including the beginning
balance) and a total of $59,600 credits. All adjusting entries have been made for the month of July 2017,
except the adjustment for inventory. Fargo's fiscal year end is June 30.
Account
Debit
Credit
Cash
$67,900
$59,600
Accounts Receivable
58,000
54.400
Allowance for Doubtful Accounts
700
1,100
Inventory
60,000
Prepaid Advertising
1.200
400
Office Supplies on Hand
1,700
1,300
Office Equipment
22,000
1,500
Accumulated Depreciation
400
7,600
Accounts Payable
31,900
40,000
Salaries Payable
800
Interest Payable
100
Dividends Payable
4,000
4,000
Notes Payable
3,000
30,000
Common Stock
10.000
Additional Paid-In Capital
20,000
Retained Earnings
4,000
19,900
Sales
61,000
Sales Returns
2,200
Sales Discounts
500
Purchases
42,000
Purchase Returns and Allowances
900
Purchase Discounts
400
Salaries Expense
9,200
Office Supplies Expense
1,300
Insurance Expense
700
Advertising Expense
600
Bad Debt Expense
500
Miscellaneous Expense
400
Depreciation Expense
300
Interest Expense
300
Loss on Sale of Office Equipment
200
Totals
$313,000
$313,000
