Reference no: EM132567282

Question - Microtel began operations at the beginning of 20X6 with a $10,000 cash investment by stockholders. During 20X6 Microtel had revenue on account of $5000, of this amount $2,000 was collected during 20X6 and $3000 was an outstanding receivable at year-end. Microtel incurred $3,000 if operating expenses during 20X6; of this amount $1,000 was unpaid at year-end. During 20X6 $1000 cash was disbursed as dividends. The only other transaction during 20X6 was the purchase of $5,000 of equipment for cash near the end of the year. How much were Microtel's liabilities at the year-end?