Following Is a List of Account Balances of Wilson Mowing

question 61

Multiple Choice

Following is a list of account balances of Wilson Mowing Service as at 31 December of the first year of operation:
$$\begin{array} { | l | l | } \hline \text { Accounts receivable } & \$ 6000 \\\hline \text { Accounts payable } & 7000 \\\hline \text { Salary expense } & 7000 \\\hline \text { Repairs expense } & 800 \\\hline \text { Truck } & 10,000 \\\hline \text { Equipment } & 12,000 \\\hline \text { Loans payable } & 8100 \\\hline \text { Cash } & 7400 \\\hline \text { Supplies expense } & 1300 \\\hline \text { Service revenue } & 35,000 \\\hline \text { Petrol expense } & 2900 \\\hline \text { Salary payable } & 300 \\\hline\end{array}$$
At the end of the year,what is the amount of total liabilities?

• A) $24,500
• B) $15,100
• C) $15,400
• D) $27,400

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Definitions:

Pneumatic Suspension

An air suspension.

Height Control Valve

A simple lever-actuated valve used on an air suspension system to automatically maintain chassis ride height at a preset dimension; provides the suspension with its adaptive capability. Also known as a leveling valve.

Insufficient Torque

A condition where the applied torque is not enough to overcome the load or resistance.