Solve the problem.Prepare a balance sheet for Mullen's Hardware for December 31 of last year. The company assets are cash and merchandise inventory $80,000. The liabilities are and wages payable $9000. The owner's capital is $101,000.

Question

A. Mullen's Hardware Balance Sheet
Total assets: $128,000
Total liabilities: $27,000
Total liabilities and owner's equity: $128,000

B. Mullen's Hardware Balance Sheet
Total assets: $80,000
Total liabilities: $18,000 
Total liabilities and owner's equity: $101,000

C. Mullen's Hardware Balance Sheet
Total assets: $128,000
Total liabilities: $18,000 
Total liabilities and owner's equity: $128,000

D. Mullen's Hardware Balance Sheet
Total assets: $128,000
Total liabilities: $9000
Total liabilities and owner's equity: $9000

Answer 1

Answer: A