Question

Wetzel Company has the following accounts and balances at the end of the fiscal​ year:

Longminus−Term

Notes Payable
$155,000

Accounts Receivable

$30,000

Accounts Payable

$42,000

Building

​$55,000

Cash and Cash Equivalents

$74,000

Salaries Expense

​$20,500

Common Stock

$ 24 comma 000$24,000

Interest Payable

$1,500

Land

$44,000

Shortminus−term

Investments
$30,000

Income Taxes Payable

$13,000

Equipment

​$59,500

Supplies

$29,000

Service Revenue

​$99,000

Supplies Expense

​$38,000

Utilities Expense

​$28,500

Income Tax Expense

$ 20 comma 000$20,000

What is the total amount of liabilities at the end of the​year?

A.

$220,000

B.

$211,500

C.

$106,500

D.

$56,500

Answer 1

Answer:

Option B is correct.

Total liabilities=$211,500

Explanation:

Option B is correct.

The liabilities are the payables which company have to pay.

So,to calculate the total liabilities we will sum up all the payables.

Total liabilities=long term Notes payable + Account Payable + Interest Payable + Income Taxes Payable

Total liabilities=$155,000+$42,000+$1500+$13000

Total liabilities=$211,500