Barnes Company showed the following balances at the end of its first year:
What did Barnes Company show as total credits on its trial balance?
Cash $14,000
Prepaid insurance 700
Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Common stock 5,400
Dividends 700
Revenues 24,000
Expenses 17,500
Solution
Hi,
The correct naswer is as follows:
accounts payable 2,800
notes payable 4,200
common stock 5,400
revenues 24,000
total credits on its trial balance = 2800+4200+5400+24000
= $36400
Hence, $36400 is the correct answer