During its first year of operations, a company entered into the following transactions:
-Borrowed $5,000 from the bank by signing a promissory note.
-Issued stock to owners for $10,000.
-Purchased $1,000 of supplies on account.
-Paid $400 to suppliers as payment on account for the supplies purchased.
-Use the information above to answer the following question.What is the amount of total liabilities at the end of the year?
A) $6,000.
B) $15,600.
C) $16,000.
D) $5,600.

Question

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The Answer of During its first year of operations, a company entered into the following transactions:
-Borrowed $5,000 from the bank by signing a promissory note.
-Issued stock to owners for $10,000.
-Purchased $1,000 of supplies on account.
-Paid $400 to suppliers as payment on account for the supplies purchased.
-Use the information above to answer the following question.What is the amount of total liabilities at the end of the year?
A) $6,000.
B) $15,600.
C) $16,000.
D) $5,600.

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