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Question - Bailey Corporation, prepares the following adjustments required at the end of the month on July 31: Before these adjustments, Bailey had assets of $70,000, Liabilities of $50,000 and Stockholders' equity of $20,000. Here are the adjustments made:
a. Received a $771 utility bill for electricity usage in July to be paid in August.
b. Owed wages to 2 employees who worked five days at $94 each per day at the end of July. The company will pay employees at the end of the first week of August.
c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $1,800 for one full year of interest. No interest has been recorded yet.
After the adjustments, what the liabilities on 7/31?
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