Watson Foods Inc reported the following transactions for Sep

Watson? Foods, Inc. reported the following transactions for September 2019. ?a) The business received $ 20 comma 000 $20,000 cash and issued common stock. It was credited to Common Stock. ?b) The business purchased office equipment for $ 11 comma 500 $11,500 for which $ 3 comma 500 $3,500 cash was paid and the balance was put on a note payable. ?c) Paid insurance expense of $ 1 comma 700 $1,700 cash. ?d) Paid the September utility bill for $ 900 $900 cash. ?e) Paid $ 1 comma 600 $1,600 cash for September rent. ?f) The business had sales of $ 11 comma 000 $11,000 in September. Of these? sales, 60 60?% were cash? sales, and the balance was credit sales. ?g) The business paid $ 7 comma 000 $7,000 cash for office furniture. What are the total liabilities at the end of? September, 2019? A. $ 1 comma 700 $1,700 B. $ 11 comma 500 $11,500 C. $ 8 comma 000 $8,000 D. $ 11 comma 000 $11,000

Solution

Total liabilities at the end of? September, 2019 = (11500-3500)= $8000