A Company Was Formed with $60,000 Cash Contributed by Its

question 14

Multiple Choice

A company was formed with $60,000 cash contributed by its owners in exchange for common stock.The company borrowed $30,000 from a bank.The company purchased $10,000 of inventory and paid cash for it.The company also purchased $70,000 of equipment by paying $10,000 in cash and issuing a note for the remainder.
-Use the information above to answer the following question.What is the amount of the total liabilities to be reported on the balance sheet?

• A) $60,000.
• B) $0
• C) $90,000.
• D) $80,000.