Following Is a List of Account Balances of Wilson Mowing

question 117

Multiple Choice

Following is a list of account balances of Wilson Mowing Services as of December 31 of the first year of operation:
$$\begin{array} { | l | r | } \hline \text { Accounts receivable } & \$ 5,000 \\\hline \text { Accounts payable } & 4,000 \\\hline \text { Salary expense } & 5,000 \\\hline \text { Repairs expense } & 1,000 \\\hline \text { Truck } & 10,000 \\\hline \text { Equipment } & 8,000 \\\hline \text { Notes payable } & 8,200 \\\hline \text { Cash } & 7,500 \\\hline \text { Supplies expense } & 1,600 \\\hline \text { Service revenue } & 32,000 \\\hline \text { Gasoline expense } & 3,800 \\\hline \text { Salary payable } & 200 \\\hline\end{array}$$ What is the amount of total liabilities at the end of the year?

• A)$12,400
• B)$24,100
• C)$21,200
• D)$12,200

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Definitions:

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Negotiable Instruments

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Obligee

The party in a contract or agreement who is entitled to receive a benefit or performance from the other party, known as the obligor.