Problem:
Chik Chik Company showed the following balances at the end of its first year:
Prepaid insurance
|
9,400
|
Accounts receivable
|
7,000
|
Accounts payable
|
5,600
|
Notes payable
|
8,400
|
Common stock
|
2,800
|
Dividends
|
1,400
|
Revenues
|
44,000
|
Expenses
|
35,000
|
Required:
Question: What did Chik Chik Company show as total credits on its trial balance?
Select one:
A. $70,200
B. $60,800
C. $62,200
D. $51,400
Note: Be sure to show how you arrived at your answer.