Question

Dak Company began operations on August 1, 2019 and entered
into the following transactions during 2019:

1.  On August 1, Dak Company sold common stock to owners in
    the amount of $200,000 and borrowed 100,000 from the
    local bank on a 10-month, 12% note payable.

2.  On September 1, Dak Company paid $50,000 cash to purchase
    supplies.

3.  On October 1, Dak Company received $90,000 cash from a
    customer for services to be performed over the next
    nine months.

4.  On November 15, Dak Company purchased a piece of land
    costing $80,000 by paying $60,000 in cash and agreeing
    to pay the remainder within six months.

5.  On December 31, based on a physical count, Dak Company
    determined it had $43,000 of supplies still on hand.

Calculate the amount of total liabilities that Dak Company
would report in its December 31, 2019 balance sheet after
all the above transactions are recorded and all necessary
adjusting entries are made.

Answer 1