Wildhorse Co. showed the following balances at the end of its first year: Cash Prepaid insurance Accounts receivable Accounts payable Notes payable Common stock 15120 760 3780 3020 4540 5830 760 31320 18900 Revenues What amount did Wildhorse Co. show as total credits?

a. $44710O

b. $45470

c. $43960

d $46220

The correct answer is option (B).

Explanation:

According to the scenario, the total credits can be calculate by using following formula:

Total Credits = Accounts payable + Notes payable + Common stock + Dividends + Revenue

Where,

Accounts payable = $3,020

Notes payable = $4,540

Common Stock = $5,830

Dividends = $760

Revenue = $31,320

By putting these value in the formula we get,

Total Credits = $3,020 + $4,540 + $5,830 + $760 + $31,320

= $45,470