Linda Keller opened an engineering office and titled the business Engineering Enterprises P.C.During its first month of operations,it completed the following transactions: I.Linda invested $30,000 in the business,which in turn issued common stock to her.
V.The business borrowed $8,000 from the bank,issuing a note payable.
At the end of the month,total liabilities would be:
A)$8,000.
B)$60,000.
C)$68,000.
D)$70,000.

Question

Linda Keller opened an engineering office and titled the business Engineering Enterprises P.C.During its first month of operations,it completed the following transactions: I.Linda invested $30,000 in the business,which in turn issued common stock to her.
 V.The business borrowed $8,000 from the bank,issuing a note payable.
At the end of the month,total liabilities would be:
A)$8,000. 
B)$60,000. 
C)$68,000. 
D)$70,000.

Quizplus · Accepted Answer

The total liabilities at the end of the month would be the sum of the note payable borrowed from the bank ($8,000) and the common stock issued to Linda ($30,000), which is a total of $38,000. Therefore, the correct answer is C, $68,000 (total liabilities of $38,000 plus Linda's initial investment of $30,000 in common stock).

Linda Keller Opened an Engineering Office and Titled the Business