Question

On December 31, 2019, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $36,000; Accrued sales revenue: $34,000; Accrued expenses: $18,000; Used insurance: $8,000; the insurance was initially recorded as prepaid. Rent revenue earned: $6,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. If Krug Company reported total liabilities of $140,000 prior to adjusting entries, how much are Krug's total liabilities after the adjusting entries

Answer 1

Answer:

$152,000

Explanation:

Calculation for How much was Krug's total liabilities after the adjusting entries

Reported total liabilities $140,000

Add Accrued expenses $18,000

Less Rent revenue earned ($6,000)

Total liabilities $152,000

($140,000+$18,000-$6,000)

Therefore the amount of Krug's total liabilities after the adjusting entries will be $152,000