Asked by Ashley Young on May 02, 2024
Verified
Use the adjusted trial balance for Stockton Company. Determine the total liabilities for the period.
A) $1,900
B) $6,200
C) $4,300
D) $20,240
Adjusted Trial Balance
A list of all accounts and their balances after adjusting entries are made, used to prepare financial statements.
Liabilities
The rights of creditors that represent debts of the business.
Period
Period refers to a length or portion of time, often defined in the context of financial reporting or cycles.
- Calculate and analyze the elements of financial statements from adjusted trial balance.
Verified Answer
IZ
Izzan ZikriMay 06, 2024
Final Answer :
B
Explanation :
To determine the total liabilities for the period, we add up all the liability accounts on the adjusted trial balance. This includes:
- Accounts Payable: $3,700
- Notes Payable: $1,500
- Salaries Payable: $1,000
Total liabilities = $3,700 + $1,500 + $1,000 = $6,200. Therefore, the correct answer is B.
- Accounts Payable: $3,700
- Notes Payable: $1,500
- Salaries Payable: $1,000
Total liabilities = $3,700 + $1,500 + $1,000 = $6,200. Therefore, the correct answer is B.
Learning Objectives
- Calculate and analyze the elements of financial statements from adjusted trial balance.