Sharon Samson starts a plumbing service called Reliable Waterworks.Transactions of Reliable Waterworks during the first year of operations are given below:
A.Sharon deposited $10,000 into a new cheque account for the business and recorded the capital contribution.
B.Paid $1200 cash for equipment to be used for plumbing repairs.
C.Borrowed $14,000 from a local bank and deposited the money in the cheque account.
D.Paid $400 rent for the year.
E.Purchased $300 of office supplies by cash.
F.Completed a plumbing repair project for a local lawyer and received $3500 cash.
Calculate the amount of total liabilities at the end of the first year.

Question

Sharon Samson starts a plumbing service called Reliable Waterworks.Transactions of Reliable Waterworks during the first year of operations are given below: 
A.Sharon deposited $10,000 into a new cheque account for the business and recorded the capital contribution.
B.Paid $1200 cash for equipment to be used for plumbing repairs.
C.Borrowed $14,000 from a local bank and deposited the money in the cheque account.
D.Paid $400 rent for the year.
E.Purchased $300 of office supplies by cash.
F.Completed a plumbing repair project for a local lawyer and received $3500 cash.
Calculate the amount of total liabilities at the end of the first year.

Quizplus · Accepted Answer

The only liability is the loan from the bank, which is $14,000.

Sharon Samson Starts a Plumbing Service Called Reliable Waterworks