Computational Questions 7. Electrelane Company showed the following balances at the end of its first...
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Computational Questions 7. Electrelane Company showed the following balances at the end of its first year: Cash $ 2,000 Prepaid Insurance 3,500 Accounts Receivable 2,500 Accounts Payable 2,000 Notes Payable 3,000 Owners Capital 1,000 Owners Drawings 500 Revenues 16,000 Expenses 12,500 What did Electrelene Company show as total credits on its trial balance? A. $4,500 B. $22,000 2,000 + 3,000 + 1,000 + 16,000 = 22,000 C. $22,500 D. $24,500
I don't know why I have to add owner's capital and revenue for credit. Please explain in detail
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You can see the logs in the Dashboard.