Watson Foods,Inc.reported the Following Transactions for September 2019

question 121

Multiple Choice

Watson Foods,Inc.reported the following transactions for September 2019.
A.The business received $22,000 cash and issued common stock.It was credited to Common Stock.
B.The business purchased office equipment for $9,000 for which $3,500 cash was paid and the balance was put on a note payable.
C.Paid insurance expense of $1,800 cash.
D.Paid the September utility bill for $900 cash.
E.Paid $2,000 cash for September rent.
F.The business had sales of $10,000 in September.Of these sales,60% were cash sales,and the balance was credit sales.
G.The business paid $7,000 cash for office furniture.
What are the total liabilities at the end of September,2019?

• A)$10,000
• B)$1,800
• C)$5,500
• D)$9,000

---

Definitions:

Parallel Importing

The practice of importing goods through channels that are unofficial, unauthorized, or unintended by the original manufacturer.

Back-Channel Market

A market where goods and services are traded through secondary, often unofficial, routes or channels.

Joint Venture

A business agreement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project, sharing both the risks and rewards.

Direct Importing

The process by which a business buys products directly from a foreign country to bring into its home market, bypassing any middlemen.