During Its First Year of Operations, a Company Entered into the Following

question 102

Multiple Choice

During its first year of operations, a company entered into the following transactions:
-Borrowed $5,000 from the bank by signing a promissory note.
-Issued stock to owners for $10,000.
-Purchased $1,000 of supplies on account.
-Paid $400 to suppliers as payment on account for the supplies purchased.
-Use the information above to answer the following question.What is the amount of total liabilities at the end of the year?

• A) $6,000.
• B) $15,600.
• C) $16,000.
• D) $5,600.

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Definitions:

Call Button

A device used by patients to alert healthcare providers or caregivers to their need for assistance.

Staff Person

An individual who is employed by an organization and is part of its workforce, contributing to its goals and mission.

Agitated

Feeling or appearing troubled or nervous.

"Do Not Disturb" Sign

A notice placed in a visible area to indicate that interruptions or disturbances are not welcome at that time.