Question

Chik Chik Company showed the following balances at the end of its first year: Cash $ 3,000 Prepaid insurance 4,700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 1,400 Dividends 700 Revenues 22,000 Expenses 17,500 What did Chik Chik Company show as total credits on its trial balance

Answer 1

Answer: $30,400

Explanation:

Accounts with credit balances are revenue, liabilities and stock or equity.

The credit balances above are:

• Accounts payable, Notes payable, common stock, revenues,

= 2,800 + 4,200 + 1,400 + 22,000

= $30,400