Question

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $11,350, Prepaid Insurance, $400, Equipment, $26,200 and Cash, $21,650. On the same date, SloMo owed the following creditors: Simpson Supply Company. $17,000, Allen Office Equipment, $14,500. The total amount of Liabilities is Multiple Choice $3.500 o oo

Answer 1

Answer:

The total Liabilities are $ 31,500

Explanation:

SloMo Delivery Service

The following are the assets of the company.

Cash, $21,650

Accounts Receivable, $11,350,

Prepaid Insurance, $400,

Equipment, $26,200

Total Assets $ 59,600

The creditors or Accounts Payable are the liabilities of the company.

Given creditors

Simpson Supply Company. $17,000

Allen Office Equipment, $14,500

The total Liabilities are $ 31,500

Owner's Equity = $ 59,600 - $ 31,500 = $ 28,100