Consider the Following Information from a Company's Unadjusted Trial Balance

question 19

Multiple Choice

Consider the following information from a company's unadjusted trial balance at December 31,2018.All accounts have normal balances. $\begin{array}{lr}\text { Accounts Receivable } & \$ 4,500 \\\text { Accounts Payable } & 650 \\\text { Cash } & 1,700 \\\text { Service Revenue } & 5,500 \\\text { Common Stock } & 4,000 \\\text { Equipment } & 4,900 \\\text { Insurance Expense } & 400 \\\text { Land } & 3,800 \\\text { Notes Payable, Due 2021 } & 4,000 \\\text { Notes Receivable, Matures 2019 } & 1,200 \\\text { Prepaid Insurance } & 400 \\\text { Rent Expense } & 1,400 \\\text { Retained Earnings, January 1,2018 } & 7,850 \\\text { Salaries and Wages Expense } & 3,700\end{array}$ What is the total of the debit side of the unadjusted trial balance?

• A)$22,000.
• B)$17,350.
• C)$16,500.
• D)$13,500.

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Definitions:

Equilibrium

A condition where the supply and demand in the market are in equilibrium, leading to stable pricing.

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Free Trade

An economic policy that allows for the unrestricted import and export of goods and services between countries without tariffs or quotas.

Production Costs

The expenses involved in manufacturing a product, including raw materials, labor, and overhead.