At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $11,350; Prepaid Insurance, $400; Equipment, $26,200 and Cash, $21,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $17,000; Allen Office Equipment, $14,500.
The total amount of Liabilities is:
A)$17,000.
B)$14,500.
C)$28,100.
D)$31,500.

Question

Quizplus · Accepted Answer

The total liabilities are the sum of amounts owed to creditors: Simpson Supply Company ($17,000) and Allen Office Equipment ($14,500), totaling $31,500.

At the End of the First Month of Operations for SloMo