Question

use the adjusted trial balance for Stockton Company to answer the question that follow. Stockton Company Adjusted Trial Balance December 31 Account No. Debit Balances Credit Balances Cash 11 6,530 Accounts Receivable 12 2,100 Prepaid Expenses 13 700 Equipment 18 13,700 Accumulated Depreciation 19 1,100 Accounts Payable 21 1,900 Notes Payable 22 4,300 Bob Steely, Capital 31 12,940 Bob Steely, Drawing 32 790 Fees Earned 41 9,250 Wages Expense 51 2,500 Rent Expense 52 1,960 Utilities Expense 53 775 Depreciation Expense 54 250 Miscellaneous Expense 59 185 Totals 29,490 29,490 Use the adjusted trial balance for Stockton Company. Determine the total liabilities for the period. a. $20,240 b. $6,200 c. $4,300 d. $1,900

Answer 1

Answer:

b. $6,200

Explanation:

Assets: things or right owned by the company which can generate cash in the future

Liabilities: obligation to pay or do from the company in favor of third parties.

Equity: capital accounts and earnings from the business

Based on this definition we can determinate the following liabilities accounts:

Accounts Payable 1,900

Notes Payable      4,300  

Total liabilities       6,200