Merchant Corporation provides plumbing services.Transactions of Merchant during the first year of operations are given below.
a)Received $12,000 cash and issued common stock to Sharon.
b)Paid $1,600 cash for equipment to be used for plumbing repairs.
c)Borrowed $14,000 from a local bank and deposited the money in the checking account.
d)Paid $600 rent for the year.
e)Purchased $200 of office supplies by cash.
f)Completed a plumbing repair project for a local lawyer and received $3,000 cash.
Calculate the amount of total liabilities at the end of the first year.

Question

Merchant Corporation provides plumbing services.Transactions of Merchant during the first year of operations are given below. 
a)Received $12,000 cash and issued common stock to Sharon.
b)Paid $1,600 cash for equipment to be used for plumbing repairs.
c)Borrowed $14,000 from a local bank and deposited the money in the checking account.
d)Paid $600 rent for the year.
e)Purchased $200 of office supplies by cash.
f)Completed a plumbing repair project for a local lawyer and received $3,000 cash.
Calculate the amount of total liabilities at the end of the first year.

Quizplus · Accepted Answer

Borrowings from bank = $14,000

Merchant Corporation Provides Plumbing Services