Reliable Waterworks Corporation provides plumbing services.Transactions of Reliable Waterworks during the first year of operations are given below:
A. Received $14,000 cash and issued stock to Sharon,stockholder.
B.Paid $2,000 cash for equipment to be used for plumbing repairs.
C.Borrowed $15,000 from a local bank and deposited the money in the checking account.
D.Paid $600 rent for the year.
E.Purchased $900 of office supplies by cash.
F.Completed a plumbing repair project for a local lawyer and received $3,500 cash.
Calculate the amount of total liabilities at the end of the first year.

Question

Reliable Waterworks Corporation provides plumbing services.Transactions of Reliable Waterworks during the first year of operations are given below: 
A. Received $14,000 cash and issued stock to Sharon,stockholder.
B.Paid $2,000 cash for equipment to be used for plumbing repairs.
C.Borrowed $15,000 from a local bank and deposited the money in the checking account.
D.Paid $600 rent for the year.
E.Purchased $900 of office supplies by cash.
F.Completed a plumbing repair project for a local lawyer and received $3,500 cash.
Calculate the amount of total liabilities at the end of the first year.

Quizplus · Accepted Answer

Total liabilities at the end of the first year is $15,000. This is because the company borrowed $15,000 from a local bank and deposited the money in the checking account.

Reliable Waterworks Corporation Provides Plumbing Services