Question

Wetzel Company has the following accounts and balances at the end of the fiscal​ year: Long−Term Notes Payable ​$150,000 Accounts Receivable ​$30,000 Accounts Payable ​$41,000 Building ​$55,000 Cash and Cash Equivalents ​$38,000 Salaries Expense ​$20,500 Common Stock ​$22,000 Interest Payable ​$4,500 Land ​$43,000 Short−term Investments ​$30,000 Income Taxes Payable ​$10,000 Equipment ​$59,500 Supplies ​$25,000 Service Revenue ​$99,000 Supplies Expense ​$38,000 Utilities Expense ​$28,500 Income Tax Expense ​$25,000 What is the total amount of liabilities at the end of the​ year?

Answer 1

$205,500

Explanation:

The computation of the total amount of liabilities at the end of the year is shown below:-

The Total amount of liabilities at the end of the year is

= Long−Term Notes Payable + Accounts payable + Interest payable + Income tax payable

= $150,000 + $41,000 + $4,500 + $10,000

= $205,500

Therefore for computing the total amount of liabilities at the end of the year we simply applied the above formula.