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A company was formed with $61,800 cash contributed by its owners in exchange for common stock. The company borrowed $31,800 from a bank. The company purchased $11,800 of inventory and paid cash for it. The company also purchased $71,800 of equipment by paying $10,000 in cash and issuing a note for the remainder.

What is the amount of the total assets to be reported on the balance sheet?

$155,400

$81,800

$165,400

$93,600

What is the amount of the total liabilities to be reported on the balance sheet?

$61,800

$93,600

$0

$81,800