at the end of the current accounting period, account balances were as follows: cash, $29,000; accounts…

at the end of the current accounting period, account balances were as follows: cash, $29,000; accounts receivable, $43,000; common stock, $19,000; retained earnings, $11,000. liabilities at the end of the period were:\n\na. $53,000.\nb. $61,000.\nc. $72,000.\nd. $42,000.

at the end of the current accounting period, account balances were as follows: cash, $29,000; accounts receivable, $43,000; common stock, $19,000; retained earnings, $11,000. liabilities at the end of the period were:\n\na. $53,000.\nb. $61,000.\nc. $72,000.\nd. $42,000.

Answer

Explanation:

Step1: Calculate total assets

Total assets = Cash + Accounts Receivable. So, total assets = $29000 + 43000=$72000$.

Step2: Recall accounting - equation

The accounting equation is Assets = Liabilities + Equity. Equity = Common Stock+ Retained Earnings. Equity = $19000 + 11000=$30000$.

Step3: Solve for liabilities

Liabilities = Assets - Equity. Substitute the values of assets and equity. Liabilities = $72000-30000=$42000$.

Answer:

D. $42,000