Question

Marigold Corp. showed the following balances at the end of its first year:
Cash $10920
Prepaid insurance 550
Accounts receivable 2730
Accounts payable 2180
Notes payable 3280
Common stock 4210
Dividends 550
Revenues 22620
Expenses 13650

What amount did Marigold Corp. show as total credits? (A) $31750(B) $33380(C) $32290(D) $32840

Answer 1

Answer:

(C) $32290

Explanation:

The total credit balance is shown below:

= Accounts payable + notes payable + common stock + revenues

= $2,180 + $3,280 + $4,210 + $22,620

= $32,290

All the other items which are mentioned in the question contain debit balance so these items would not be considered in the computation part.