Question - Watson Foods Company, a sole proprietorship, reported the following transactions for September 2019.
a) The business received $ 21000 cash from the owner in exchange for capital.
b) The business purchased office equipment for $ 11500 for which $2,500 cash was paid and the balance was put on a note payable.
c) Paid insurance expense of $1,600 cash.
d) Paid the September utility bill for $ 800 cash
e) Paid $1,900 cash for September rent.
f) The business had sales of $12,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
g) The business paid $6,000 cash for office furniture.
What are the total liabilities at the end of September 2019?
A. $11,500
B. $12,000
C. $1,600
D. $9,000