Watson Foods, Inc. reported the following transactions for September 2019.
A. The business received $22,000 cash and issued common stock. It was credited to Common Stock.
B. The business purchased office equipment for $9,000 for which $3,500 cash was paid and the balance was put on a note payable.
C.Paid insurance expense of $1,800 cash.
D. Paid the September utility bill for $900 cash.
E. Paid $2,000 cash for September rent.
F. The business had sales of $10,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
G. The business paid $7,000 cash for office furniture.
What are the total liabilities at the end of September, 2019?

Question

Watson Foods, Inc. reported the following transactions for September 2019. 
A. The business received $22,000 cash and issued common stock. It was credited to Common Stock.
B. The business purchased office equipment for $9,000 for which $3,500 cash was paid and the balance was put on a note payable.
C.Paid insurance expense of $1,800 cash.
D. Paid the September utility bill for $900 cash.
E. Paid $2,000 cash for September rent.
F. The business had sales of $10,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
G. The business paid $7,000 cash for office furniture.
What are the total liabilities at the end of September, 2019?

Quizplus · Accepted Answer

The total liabilities at the end of September 2019 are $5,500, which come from the balance of the office equipment purchase that was put on a note payable ($9,000 - $3,500 = $5,500). None of the other transactions listed affect the total liabilities.