Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Watson Foods, Inc. reported the following transactions during September: a) The business received $24,000 cash and issued common stock. It was credited to Common Stock.

image text in transcribed Watson Foods, Inc. reported the following transactions during September: a) The business received $24,000 cash and issued common stock. It was credited to Common Stock. b) The business purchased office equipment for $9,000 for which $3,500 cash was paid and the balance was put on a note payable. c) Paid insurance expense of $1,800 cash. d) Paid the September utility bill for $800 cash. e) Paid $1,600 cash for September rent. f) The business had sales of $10,000 in September. Of these sales, 40% were cash sales, and the balance was credit sales. g) The business paid $6,000 cash for office furniture. Assuming the total liabilities balance is zero at the beginning of September, what is the total liabilities balance at the end of September? A. $5,500 B. $10,000 C. $9,000 D. $1,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C Knapp

12th Edition

357515404, 978-0357515402

More Books

Students also viewed these Accounting questions