Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 3 1 , 2 0 1 9 , Krug Company prepared adjusting entries that included the following items: Depreciation expense: $ 3 1

On December 31,2019, Krug Company prepared adjusting entries that included the following items:
Depreciation expense: $31,000.
Accrued sales revenue: $29,000.
Accrued expenses: $12,000.
Used insurance: $9,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.
If Krug Company reported total liabilities of $110,000 prior to adjusting entries, how much are Krug's total liabilities after the adjusting entries?
Multiple Choice
$115,000.
$141,000.
$86,000.
$110,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Decision Emphasis

Authors: Germain B. Boer, William L. Ferrara, Debra C. Jeter

4th Edition

0873939123, 978-0873939126

More Books

Students also viewed these Accounting questions

Question

Are there professional development opportunities?

Answered: 1 week ago