Question

Broadway, inc.'s trial balance was in balance at the end of the period and showed the following accounts: accountbalance accounts payable$22,800 cash 42,600 common shares 20,600 equipment 9,600 land 34,200 notes payable 43,000 what is the balance of the credit column on broadway's trial balance?

1) $65,800
2) $174,600
3) $63,600
4) $86,400

Answer 1

To calculate the credit column balance on Broadway, Inc.'s trial balance, you add liabilities and equity accounts. The correct total, after summing Accounts Payable, Notes Payable, and Common Shares, is $86,400.

Step-by-step explanation:

The question asks us to find the balance of the credit column on Broadway, Inc.'s trial balance. The credit side of a trial balance includes liabilities, equity, and revenue accounts. Adding the balances of the credit accounts provided, which are Accounts Payable ($22,800) and Notes Payable ($43,000), they total $65,800. However, since the Common Shares ($20,600) also represents an equity account, which falls on the credit side, we need to add this as well. Thus, the credit column total would be $22,800 + $43,000 + $20,600 = $86,400. Option 4) $86,400 is the correct answer.