Question

Denton Company showed the following balances at the end of its first year:
Cash $ 7,000
Prepaid insurance 700
Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Denton, Capital 1,400
Denton, Drawing 700
Revenues 21,000
Expenses 17,500
What did Denton Company show as total credits on its trial balance?
a. $30,100
b. $29,400
c. $28,700
d. $30,800

Answer 1

Answer:

b. $29,400

Explanation:

The total credit balance in the trial balance is the sum of all credit accounts in the trial balance which are listed as follows:

Accounts payable( it is credited since it is a liability)

Notes payable( it is credited since it is a liability)

Denton, Capital(capital account has a credit balance)

Revenues( revenue also has a credit balance)

Denton Company total credits on its trial balance=2,800+4,200+1,400+21,000

Denton Company total credits on its trial balance=$29,400