Sharon Samson Starts a Plumbing Service Called Reliable Waterworks

question 123

Multiple Choice

Sharon Samson starts a plumbing service called Reliable Waterworks. Transactions of Reliable Waterworks during the first year of operations are given below:
A. Sharon deposited $14,000 into a new checking account for the business and recorded the capital contribution.
B. Paid $2,000 cash for equipment to be used for plumbing repairs.
C. Borrowed $15,000 from a local bank and deposited the money in the checking account.
D. Paid $600 rent for the year.
E. Purchased $900 of office supplies by cash.
F. Completed a plumbing repair project for a local lawyer and received $3,500 cash.
Calculate the amount of total liabilities at the end of the first year.

• A) $15,000
• B) $14,000
• C) $27,000
• D) $3,500

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