Wolfe Inc.
Wolfe Inc.reports these account balances at January 1,2017:
?
$$\begin{array} { l r }
\text { Retained Earnings } & \$ 49,000 \
\text { Accounts Receivable } & 20,000 \
\text { Accounts Payable } & 24,000 \
\text { Capital Stock } & 185,000 \
\text { Land } & 153,000 \
\text { Cash } & 13,000 \
\text { Equipment } & 20,000 \
\text { Notes Payable } & 28,000 \
\text { Buildings } & 80,000
\end{array}$$ ?
-See the account balances for Wolfe Inc. ?
On January 31,Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.On January 31,2017,the total liabilities are
A)$0.
B)$56,000.
C)$41,000.
D)$30,000.

Question

Wolfe Inc.
Wolfe Inc.reports these account balances at January 1,2017:
?
 $$\begin{array} { l r } 
\text { Retained Earnings } & \$ 49,000 \
\text { Accounts Receivable } & 20,000 \
\text { Accounts Payable } & 24,000 \
\text { Capital Stock } & 185,000 \
\text { Land } & 153,000 \
\text { Cash } & 13,000 \
\text { Equipment } & 20,000 \
\text { Notes Payable } & 28,000 \
\text { Buildings } & 80,000
\end{array}$$ ?
-See the account balances for Wolfe Inc. ?
On January 31,Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.On January 31,2017,the total liabilities are
A)$0.
B)$56,000.
C)$41,000.
D)$30,000.

Quizplus · Accepted Answer

Accounts Receivable decreases by $12,000, and Note Payable decreases by $11,000. Thus, the new account balances are:
 
Accounts Receivable: $48,000 - $12,000 = $36,000
Notes Payable: $41,000 - $11,000 = $30,000
 
Therefore, the total liabilities are $30,000, making choice (C) the correct answer.

Wolfe Inc Wolfe Inc ? -See the Account Balances for Wolfe Inc

Wolfe Inc
Wolfe Inc ?
-See the Account Balances for Wolfe Inc