Ents costing $9,800 were purchased using cash.$10,800 was lent to an employee; the employee signed a six-month note in exchange for the loan. How much are Warren's total liabilities at the end of April

Step-by-step explanation:

Given that,

Purchase cost= $9,800

Employee cash lend=$10,800

Duration 6months

Total employee cash=$10,800×6

Total employee cash=$64,800

A liability may be a part of past transaction done by the firm, e.g. purchase of a fixed asset or current asset.

Therefore, The total liabilities is the cash lend to the employee and the purchase

Then, Liabilities = 64,800+9800

Total liabilities = $ 74,600