Question

Crane Company showed the following balances at the end of its first year: Cash $3900 Prepaid insurance 6900 Accounts receivable 4900 Accounts payable 3900 Notes payable 5900 Common stock 1900 Dividends 900 Revenues 31000 Expenses 24000 What did Crane Company show as total credits on its trial balance?

Answer 1

Answer:

$42,700

Explanation:

The computation of the total credits of the trial balance is shown below:

= Account payable + note payable + common stock + revenues

= $3,900 + $5,900 + $1,900 + $31,000

= $42,700

The above accounts are classified in the credit section of the trial balance and the remaining items are classified on the debit section of the trial balance