burger barn, inc. began operations two years ago. results from its first two years of operations are…

burger barn, inc. began operations two years ago. results from its first two years of operations are provided below.\naccount\tbalance at end of year 1\tbalance at end of year 2\naccounts payable\t$23,000\t$17,000\nbuilding\t$26,000\t$40,000\ncash\t$150,000\t$150,000\ncommon stock\t$80,000\t$80,000\ndividends\t$0\t$20,000\ninventory\t$12,000\t$9,000\nland\t$60,000\t$60,000\nlong - term notes payable\t$125,000\t$108,000\noperating expense\t$206,000\t$231,000\nrevenues\t$223,000\t$284,000\nsalaries payable\t$3,000\t$4,000\nwhat amount of total liabilities should burger barn report at the end of year 1?\na. $97,000\nb. $248,000\nc. $151,000\nd. $125,000

burger barn, inc. began operations two years ago. results from its first two years of operations are provided below.\naccount\tbalance at end of year 1\tbalance at end of year 2\naccounts payable\t$23,000\t$17,000\nbuilding\t$26,000\t$40,000\ncash\t$150,000\t$150,000\ncommon stock\t$80,000\t$80,000\ndividends\t$0\t$20,000\ninventory\t$12,000\t$9,000\nland\t$60,000\t$60,000\nlong - term notes payable\t$125,000\t$108,000\noperating expense\t$206,000\t$231,000\nrevenues\t$223,000\t$284,000\nsalaries payable\t$3,000\t$4,000\nwhat amount of total liabilities should burger barn report at the end of year 1?\na. $97,000\nb. $248,000\nc. $151,000\nd. $125,000

Answer

Explanation:

Step1: Identify liability accounts

Liabilities include Accounts Payable, Long - term Notes Payable, and Salaries Payable.

Step2: Find balances at end of Year 1

Accounts Payable = $23,000, Long - term Notes Payable = $125,000, Salaries Payable = $3,000.

Step3: Calculate total liabilities

Total liabilities = $23,000 + $125,000+ $3,000=$151,000

Answer:

C. $151,000