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On December 31, 2019, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $46,000; Accrued sales revenue: $44,000; Accrued expenses: $16,000; Used

On December 31, 2019, Krug Company prepared adjusting entries that included the following items:

Depreciation expense: $46,000;

Accrued sales revenue: $44,000;

Accrued expenses: $16,000;

Used insurance: $6,000; the insurance was initially recorded as prepaid.

Rent revenue earned: $4,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.

If Krug Company reported total liabilities of $240,000 prior to adjusting entries, how much are Krug's total liabilities after the adjusting entries?

Multiple Choice

  • $252,000.

  • $240,000.

  • $286,000.

  • $208,000.

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