Michael Company reports the following account balances at the end of the first year of operations: What are total liabilities at the end of the first year?
A)$37,000
B)$50,000
C)$62,000
D)$100,000

Question

Michael Company reports the following account balances at the end of the first year of operations:  What are total liabilities at the end of the first year?
A)$37,000 
B)$50,000 
C)$62,000 
D)$100,000

Quizplus · Accepted Answer

To calculate total liabilities, we need to add up all the liabilities accounts listed in the balance sheet. From the given account balances, the liabilities accounts are:
- Accounts payable: $17,000
- Notes payable: $20,000

So the total liabilities at the end of the first year is:
$17,000 + $20,000 = $37,000

Therefore, the best choice is A.

Michael Company Reports the Following Account Balances at the End