During its first year of operations,a company entered into the following transactions: Borrowed $20,000 from the bank by signing a promissory note.
Issued stock to owners for $40,000.
Purchased $4,000 of supplies on account.
Paid $1,600 to suppliers as payment on account for the supplies purchased.
What is the amount of total liabilities at the end of the year?
A)$24,000
B)$62,400
C)$64,000
D)$22,400

Question

Quizplus · Accepted Answer

Total liabilities = Notes payable to the bank of $20,000 + Accounts payable to supplier of $4,000 − $1,600 paid to supplier = $22,400

During Its First Year of Operations,a Company Entered into the Following