Wolfe Inc.reports these account balances at January 1, 2016: $$\begin{array} { l r }
\text { Retained Earnings } & \$ 49,000 \
\text { Accounts Receivable } & 20,000 \
\text { Accounts Payable } & 24,000 \
\text { Capital Stock } & 185,000 \
\text { Land } & 153,000 \
\text { Cash } & 13,000 \
\text { Equipment } & 20,000 \
\text { Notes Payable } & 28,000 \
\text { Buildings } & 80,000
\end{array}$$

-See the account balances for Wolfe Inc. ?
On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.On January 31, 2016, the total liabilities are:
A) $0
B) $56,000
C) $41,000
D) $30,000

Question

Wolfe Inc.reports these account balances at January 1, 2016: $$\begin{array} { l r } 
\text { Retained Earnings } & \$ 49,000 \
\text { Accounts Receivable } & 20,000 \
\text { Accounts Payable } & 24,000 \
\text { Capital Stock } & 185,000 \
\text { Land } & 153,000 \
\text { Cash } & 13,000 \
\text { Equipment } & 20,000 \
\text { Notes Payable } & 28,000 \
\text { Buildings } & 80,000
\end{array}$$ ​
​
-See the account balances for Wolfe Inc. ?
On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.On January 31, 2016, the total liabilities are:
A) $0
B) $56,000
C) $41,000
D) $30,000

Quizplus · Accepted Answer

Initially, the total liabilities are the sum of Accounts Payable ($24,000) and Notes Payable ($28,000), which equals $52,000. After paying $11,000 on its note payable, the new total liabilities are Accounts Payable ($24,000) + Notes Payable ($28,000 - $11,000) = $24,000 + $17,000 = $41,000.

Wolfe IncReports These Account Balances at January 1, 2016 ​ ​ -See the Account Balances for Wolfe Inc

Wolfe IncReports These Account Balances at January 1, 2016

-See the Account Balances for Wolfe Inc