Matlack Company starts on January 1, 2017 with $100,000 in common stock. At the end of 2017, Matlack has the following financial information. Their accountant needs to create financial statements using this information.

 

  The amount of liabilities as of 1/31/17 would be

a. $40,000

b. $130,000

c. $50,000

Transcribed Image Text:

Common Stock $100,000 Cash $40,000 Revenue $90,000 Accounts Receivable $25,000 Rent Expense Utilities Expense Equipment $20,000 Accounts Payable Salaries Expense $40,000 $10,000 $35,000 $90,000 Dividends Pald $10,000 Common Stock $100,000 Cash $40,000 Revenue $90,000 Accounts Receivable $25,000 Rent Expense Utilities Expense Equipment $20,000 Accounts Payable Salaries Expense $40,000 $10,000 $35,000 $90,000 Dividends Pald $10,000

Answer rating: 100% (QA)

Answer Option A is correct ie 40000 Reason Account ... View the full answer