Winrow Company Showed the Following Balances at the End of Its

question 34

Multiple Choice

Winrow Company showed the following balances at the end of its first year: $$\begin{array} { l r } \text { Cash } & \$ 11,000 \\\text { Prepaid insurance } & 500 \\\text { Accounts receivable } & 2,500 \\\text { Accounts payable } & 2,000 \\\text { Notes payable } & 3,000 \\\text { Common stock } & 5,000 \\\text { Dividends } & 500 \\\text { Revenues } & 17,000 \\\text { Expenses } & 12,500\end{array}$$ What did Winrow Company show as total credits on its trial balance?

• A) $27,500
• B) $27,000
• C) $26,500
• D) $28,000

---

Definitions:

Salaries and Wages Payable

Salaries and Wages Payable are liabilities on the balance sheet representing amounts owed to employees for work performed but not yet paid.

Mortgage Payable

A long-term liability account that records the amount owed on a property mortgage.

Current Assets

Items on a company's balance sheet anticipated to be cashed in, sold off, or utilized within the longer span of either one year or its operational cycle.

Current Liabilities

Obligations or debts that a company expects to settle within one year or within the normal operating cycle of the business.