Linda Keller opened a consulting firm, Keller Consulting P.C. During its first month of operations, the following transactions were completed: I. Linda invested $30,000 in the business, which in turn issued common stock to her.
II. The business purchased equipment on account for $63,000.
III. The business provided consulting services on account, $12,000.
IV. The business paid salaries to the receptionist, $2,000.
V. The business received cash from a customer as payment on account $6,000.
VI. The business borrowed $13,000 from the bank, issuing a note payable.
At the end of the month, total liabilities are:
A)$13,000.
B)$63,000.
C)$76,000.
D)$75,000.

Question

Quizplus · Accepted Answer

Total liabilities include the equipment purchased on account ($63,000) and the bank loan ($13,000), totaling $76,000.

Linda Keller Opened a Consulting Firm, Keller Consulting P