Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Watson Foods, Inc. reported the following transactions for September 2019. a) The business received $ 21 comma 000 cash and issued common stock. It was
Watson Foods, Inc. reported the following transactions for September 2019.
a) | The business received $ 21 comma 000 |
cash and issued common stock. It was credited to Common Stock. | |
b) | The business purchased office equipment for $ 11 comma 500 |
for which
$ 4 comma 000
cash was paid and the balance was put on a note payable. | |
c) | Paid insurance expense of $ 1 comma 200 |
cash. | |
d) | Paid the September utility bill for $ 800 |
cash. | |
e) | Paid $ 1 comma 900 |
cash for September rent. | |
f) | The business had sales of $ 11 comma 000 |
in September. Of these sales,
40
% were cash sales, and the balance was credit sales. | |
g) | The business paid $ 9 comma 000 |
cash for office furniture. |
What are the total liabilities at the end of September, 2019?
A.
$ 11 comma 500
B.
$ 1 comma 200
C.
$ 7 comma 500
D.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started