Accounting Fundamentals Certification (AFC) Practice Test

To determine the ending balance of accounts payable, you start with the beginning balance and then adjust it based on the debits and credits. Accounts payable is a liability account, which typically has a credit balance.

The beginning balance of accounts payable is $4,150. Since debits decrease accounts payable and credits increase it, you would first account for the debits of $2,200, which reduce the payable balance, and then the credits of $2,500, which increase it.

Here’s how you calculate the ending balance:

1. Start with the beginning accounts payable: $4,150.

2. Subtract the total debits: $4,150 - $2,200 = $1,950.

3. Add the total credits: $1,950 + $2,500 = $4,450.

Thus, the ending balance of accounts payable is $4,450. This reflects the total amount that the company owes to its creditors after accounting for the transactions during the period.