Winrow Company showed the following balances at the end of its first year: $$\begin{array} { l r }
\text { Cash } & \$ 11,000 \
\text { Prepaid insurance } & 500 \
\text { Accounts receivable } & 2,500 \
\text { Accounts payable } & 2,000 \
\text { Notes payable } & 3,000 \
\text { Common stock } & 5,000 \
\text { Dividends } & 500 \
\text { Revenues } & 22,000 \
\text { Expenses } & 12,500
\end{array}$$ What amount did Winrow Company show as total credits?
A)$32,500
B)$32,000
C)$31,500
D)$33,000

Question

Winrow Company showed the following balances at the end of its first year: $$\begin{array} { l r } 
\text { Cash } & \$ 11,000 \
\text { Prepaid insurance } & 500 \
\text { Accounts receivable } & 2,500 \
\text { Accounts payable } & 2,000 \
\text { Notes payable } & 3,000 \
\text { Common stock } & 5,000 \
\text { Dividends } & 500 \
\text { Revenues } & 22,000 \
\text { Expenses } & 12,500
\end{array}$$ What amount did Winrow Company show as total credits?
A)$32,500
B)$32,000
C)$31,500
D)$33,000

Quizplus · Accepted Answer

Total credits include accounts payable, notes payable, common stock, and revenues: $2,000 + $3,000 + $5,000 + $22,000 = $32,000.

Winrow Company Showed the Following Balances at the End of Its