The Following Items Are Taken from the Financial Statements of the Freight

question 89

Multiple Choice

The following items are taken from the financial statements of the Freight Service for the year ending December 31 2016: $\begin{array}{lr}\text { Accounts payable } & \$ 19,000 \\\text { Accounts receivable } & 13,000 \\\text { Accumulated depreciation - equipment } & 26,000 \\\text { Advertising expense } & 21,200 \\\text { Cash } & 15,000 \\\text { Owner's capital (1/1/16) } & 104,000 \\\text { Owner's drawings } & 11,000 \\\text { Depreciation expense } & 12,000 \\\text { Insurance expense } & 3,800\\\text { Note payable, due } 6 / 30 / 17 & 72,000 \\\text { Prepaid insurance (12-month policy) } & 7,200 \\\text { Rent expense } & 16,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 135,000 \\\text { Supplies } & 5,000 \\\text { Supplies expense } & 6,000 \\\text { Equipment } & 210,000\end{array}$ What are total long-term liabilities at December 31 2016?

• A) $0
• B) $72000
• C) $91000
• D) $93000

---

Definitions:

Social-Networking Sites

Online platforms that enable users to connect, communicate, and share content with a community of contacts.

Tight Security

An enhanced level of security measures and protocols that are implemented to protect information, assets, or premises from potential threats and vulnerabilities.

Facebook Profile

A personal account on Facebook where users can share information, photos, and updates with friends.

Spring Break

A vacation period in early spring at universities and schools in various countries, often associated with travel or relaxation.