Question
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
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$252,000.
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$240,000.
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$286,000.
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$208,000.
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