Following are transactions of Gotebo Tanners,Inc. ,a new company,during the month of January: 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?
A)$12,300.
B)$27,300.
C)$22,600.

Question

Quizplus · Accepted Answer

The total amount of Gotebo's liabilities following these transactions is $12,300, which comes from the note payable for the land purchase ($12,000) and the office supplies purchased on account ($300).

Following Are Transactions of Gotebo Tanners,Inc