Reference no: EM132567397

Question - Microtel began operations at the beginning of 20X6 with a $10,000 csh investment by stockholders. During 20X6, Microtel had revenue on account of $5000; of this $2000 was collected during 20X6 and $3000 was outstanding receivable at year end. Microtel incurred $3000 of operation expenses in 20X6; of this amount $1000 was unpaid at year end. During 20X6, $1000 was distributed as dividends. The only other transaction during 20X6 was the purchase of $5000 of equipment for cash near the end of the year. How much were Microtel's total liabilities at year end?