Question

Accounts Payable: $19,207
Accounts Receivable: 81,336
Cash: 98,324
Discount on Bonds Payable: 7,000
Sales Tax Payable: 3,512
Inventory: 95,816
Treasury Stock: 30,000
Stock Investments: 3,700
FICA Tax Payable: 3,200
Bonds Payable: 100,000
Accumulated Depreciation: 2,000

Note: Payable, due in two years 1,709 Equipment 54,128 Common Stock 100,000 Retained Earnings 102,808 Unearned Service Revenue 30,500 Supplies 10,512 Salaries and Wages Payable 17,880 Use the information above to answer the following question. What is the amount of Total Liabilities to be reported on the December 31, 2019?

Answer 1

Answer:

total liabilities = $169,008

Explanation:

total liabilities:

• Accounts Payable: $19,207
• Discount on Bonds Payable: ($7,000) ⇒ contra liability account
• Sales Tax Payable: 3,512
• FICA Tax Payable: 3,200
• Bonds Payable: 100,000
• Note Payable, due in two years 1,709
• Unearned Service Revenue 30,500 ⇒ must be reported as a liability
• Salaries and Wages Payable 17,880

to determine the total liabilities we just have to add both current and long term liabilities, and subtract any contra liability accounts = $176,008 - $7,000 = $169,008