The account "Notes Payable" began with a zero balance and then had the following changes: increase of $700, increase of $300, decrease of $600, and an increase of $280. The final balance is a:
A)credit balance of $600.
B)debit balance of $1,280.
C)credit balance of $680.
D)debit balance of $680.

Question

Quizplus · Accepted Answer

To find the final balance, we need to add up all the increases and subtract the decrease.

$0 + $700 + $300 - $600 + $280 = $680

Since the account "Notes Payable" represents a liability, it has a normal credit balance, meaning that a credit entry increases it and a debit entry decreases it. Therefore, a credit balance of $680 is the correct answer.

The Account "Notes Payable" Began with a Zero Balance and Then