Constable Co What Is the Total of the Credit Balance Accounts?
A)$166,560

question 206

Multiple Choice

Constable Co.reported the following information at December 31,Year 1: $\begin{array}{lr}\text { Accounts Payable } & \$, 750 \\\text { Accounts Receivable } & 14,025 \\\text { Cash } & 35,235 \\\text { Common Stock } & 135,000 \\\text { Equipment } & 74,250 \\\text { Inventory } & 46,800 \\\text { Notes Payable due December 31, Year 3 } & 3,750 \\\text { Retained Earnings, December 31, Year 1 } & 21,135 \\\text { Wages Payable } & 3,675\end{array}$ What is the total of the credit balance accounts?

• A)$166,560
• B)$156,135
• C)$170,310
• D)$162,885

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period, ensuring the financial statements reflect accurate and up-to-date information.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Depreciation Expense

Spreading the expense of a tangible asset over the period it's expected to be used.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its operating performance.