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Wilson Trucking,Inc.reports these account balances at January 1,2018 (shown in alphabetical order):
On January 5,Wilson Trucking collected $175,000 of its accounts receivable,paid $150,000 on its accounts payable,and paid $11,000 on its note payable.
-On January 6,2018,total liabilities are:
A)$901,000.
B)$579,000.
C)$1,399,000.
D)$1,721,000.

Question

[The following information applies to the questions displayed below.]
Wilson Trucking,Inc.reports these account balances at January 1,2018 (shown in alphabetical order):
  On January 5,Wilson Trucking collected $175,000 of its accounts receivable,paid $150,000 on its accounts payable,and paid $11,000 on its note payable.
-On January 6,2018,total liabilities are:
A)$901,000. 
B)$579,000. 
C)$1,399,000. 
D)$1,721,000.

Quizplus · Accepted Answer

To find the total liabilities, we need to add up all the liabilities mentioned in the account balances and then subtract any payments made towards those liabilities.

Liabilities as of January 1, 2018:
Accounts Payable = $280,000
Note Payable = $1,200,000
Total = $1,480,000

Payments made on January 5, 2018:
Accounts Payable = $150,000
Note Payable = $11,000
Total = $161,000

Subtracting the payments from the total liabilities gives us:
Total liabilities as of January 6, 2018 = $1,480,000 - $161,000 = $1,319,000

However, we are not given any information about any other transactions between January 1 and January 6, so we can assume that there were no other changes to the liabilities. Therefore, the final answer is:

B)$579,000.

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