Following are transactions of Gotebo Tanners,Inc.,a new company,during the month of January 2012: 1.Issued 10,000 shares of common stock for $15,000 cash.
2)Purchased land for $12,000,signing a note payable for the full amount.
3)Purchased office equipment for $1,200 cash.
4)Received cash of $14,000 for services provided to customers during the month.
5)Purchased $300 of office supplies on account.
6)Paid employees $10,000 for their first month's salaries.
What was the total amount of Gotebo's liabilities following these six transactions?

Question

Quizplus · Accepted Answer

The liabilities consist of the note payable for the land ($12,000) and the accounts payable for office supplies ($300), totaling $12,300.

Following Are Transactions of Gotebo Tanners,Inc