Reference no: EM132907517

Watson Foods Company, a sole proprietorship, reported the following transactions for September, 2019.

a) The business received $22,000 cash from the owner in exchange for capital.

b) The business purchased office equipment for $9,000 for which $2,500 cash was paid and the balance was put on a note payable.

c) Paid insurance expense of $1,500 cash.

d) Paid the September utility bill for $900 cash.

e) Paid $1,500 cash for September rent.

f) The business had sales of $11,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.

g) The business paid $8,000 cash for office furniture.

Problem 1: What are the total liabilities at the end of September, 2019?

A) $11,000

B) $1,500

C) $6,500

D) $9,000

Problem 2: Purchased office supplies totaling 5,000 on account.

A) supplies 5,000 credit cash 5,000

B) debit accounts payable 5,000, credit supplies 5000

c) debit supplies expense 5,000, credit accounts payable 5,000

d) supplies 5,000, credit accounts payable 5,000

Problem 3: Owner invested 10,000 into the business

A) debit cash 10,000, credit accounts payable 10,000

B) debit accounts receivable 10,000, credit capital 10,000

C) debit cash 10,000, credit capital 10,000

D) debit cash 10,000, credit withdrawals 10,000