Ayala Company Showed the Following Balances at the End of Its

question 78

Multiple Choice

Ayala Company showed the following balances at the end of its first year: $$\begin{array} { l r } \text { Cash } & \$ 14,000 \\\text { Prepaid insurance } & 1,400 \\\text { Accounts receivable } & 7,000 \\\text { Accounts payable } & 5,600 \\\text { Notes payable } & 8,400 \\\text { Share capital-ordinary } & 2,800 \\\text { Dividends } & 1,400 \\\text { Revenues } & 42,000 \\\text { Expenses } & 35,000\end{array}$$ What did Ayala Company show as total credits on its trial balance?

• A)$21,500
• B)$21,000
• C)$20,500
• D)$22,000

---

Definitions:

English Law

The legal system of England and Wales, based on common law principles, which has been adopted and modified in various jurisdictions worldwide.

Ancient Traditions

Long-established customs, beliefs, or practices passed down through generations.

Nonprofit Sector

The portion of an economy comprised of organizations that operate to serve public or societal interests rather than to generate profits for owners or shareholders.

Social Welfare Organizations

Groups designed to provide services and support to improve the well-being of society, often focusing on the needs of the disadvantaged.