Question

Vaughn Manufacturing showed the following balances at the end of its first year:

Cash $14280
Prepaid insurance 710
Accounts receivable 3570
Accounts payable 2860
Notes payable 4280
Common stock 5510
Dividends 710
Revenues 29580
Expenses 17850


What amount did Vaughn Manufacturing show as total credits?

Answer 1

The total credits for Vaughn Manufacturing at the end of its first year were $12,350.

Step-by-step explanation:

The total credits of a balance sheet represent the total amount of liabilities and equity. To calculate the total credits, we need to add up the balances of accounts that are considered liabilities or equity. In this case, the relevant accounts are Accounts Payable, Notes Payable, Common Stock, and Dividends. Adding up these balances, the total credits for Vaughn Manufacturing would be $12,350.