McCoy Company Provides Plumbing Services

question 16

Multiple Choice

McCoy Company provides plumbing services.The company is a sole proprietorship.Transactions during the first year of operations are provided below.
a) The owner,Sharon McCoy,contributed $10,000 cash in exchange for capital.
b) Paid $1,100 cash for equipment to be used for plumbing repairs.
c) Borrowed $12,000 from a local bank and deposited the money in the checking account.
d) Paid $300 rent for the year.
e) Purchased $200 of office supplies by cash.
f) Completed a plumbing repair project for a local lawyer and received $3,200 cash.
Calculate the amount of total liabilities at the end of the first year.

• A) $12,000
• B) $10,000
• C) $20,900
• D) $3,200

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Definitions:

Anomic Suicide

A type of suicide that occurs when an individual feels disconnected from society due to a breakdown in social norms or a lack of social regulation.

Durkheim

is a reference to Émile Durkheim, a pioneering French sociologist known for his substantial contributions to the sociology of religion, law, suicide, and the framework of functionalism.

Shared Norms

Shared norms refer to the common beliefs, values, and expectations that guide behavior within a group of individuals or society.

Strong Social Bonds

The ties and relationships between individuals that foster a sense of belonging and mutual support within a community or society.