Asked by Misty Shonkwiler on Apr 24, 2024
Verified
Determine the total liabilities for the period.
A) $1,900
B) $6,200
C) $4,300
D) $20,240
Adjusted Trial Balance
An adjusted trial balance is a list of all account titles and balances after adjustments have been made for accruals, deferrals, and other adjustments, ensuring the accounts are balanced before preparing financial statements.
Total Liabilities
The sum of all financial obligations a company owes to external parties, including loans, accounts payable, and mortgages.
- Compute the sum of total assets, liabilities, and shareholders' equity using data from an adjusted trial balance.
Verified Answer
TC
thirdperson11 Calldo6 days ago
Final Answer :
B
Explanation :
The total liabilities can be found by adding up the Credit column of all liability accounts, which is $6,200 (Accounts payable: $1,000 + Salaries payable: $2,200 + Interest payable: $1,000 + Income tax payable: $2,000 = $6,200).
Learning Objectives
- Compute the sum of total assets, liabilities, and shareholders' equity using data from an adjusted trial balance.