Category 2013 2014 accounts payable 16,200 accounts receivable 48,600 44,500 accruals 24,300 16,200 cash 81,000 98,000 common stock 64,800 81,000 cogs 56,700 64,800 depreciation expense 0 4,050 gross fixed assets 121,500 145,800 interest expense 6,400 8,100 inventories 40,500 60,800 long-term debt 81,000 89,100 net fixed assets 101,500 121,500 notes payable 44,800 37,200 operating expenses (excl. depr.) 12,100 16,200 retained earnings 40,500 60,800 sales 105,300 121,500 taxes 4,860 6,480 2. the 2014 entry for accounts payable is $ a. 38,500 b. 39,000 c. 39,500 d. 40,000 e. 40,500

The answer is e. 40,500.

Explanation:

To find out the balance for account payable in 2014, we need to recall to the Accounting equation:

Asset = Liabilities + Owner's Equity

Applying in the question, we replace the balance of asset items, liability items and equity items in 2014 to find the

Account Receivable + Cash + Inventories + Net Fixed Asset = Account Payable + Accruals + Common Stock + Long term debt + Notes payable + Retained earnings

=> 44,500 + 98,000 + 60,800 + 121,500 = Account Payable + 16,200 + 81,000 + 89,100 + 37,200 + 60,800 <=> Account Payable = $40,500.

So, the answer is e. 40,500.

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