Hallmark Company began business on October 1, 2020. Following are some of the company's transactions for the last three months of 2020: • Oct. 1 - Borrowed $30,000. No payments will be made until Oct. 1, 2022 and at that time Hallmark will owe $36,000 • Nov. 2 - Bought $12,000 of inventory on account • Dec. 8 - Sold $3,000 of inventory for $7,500 on account • Dec. 9 - Paid one-half of account payable • Dec. 31 - Received a utility bill for $1,000 for 2020, which will be paid in January 2021 • Dec. 31 - Paid a dividend of $5,000 to stockholders How much was Hallmark's current liabilities at December 31, 2020? $6,750 $12,000 $7,000 O $6,000 None of the above
Hallmark Company began business on October 1, 2020. Following are some of the company's transactions for the last three months of 2020: • Oct. 1 - Borrowed $30,000. No payments will be made until Oct. 1, 2022 and at that time Hallmark will owe $36,000 • Nov. 2 - Bought $12,000 of inventory on account • Dec. 8 - Sold $3,000 of inventory for $7,500 on account • Dec. 9 - Paid one-half of account payable • Dec. 31 - Received a utility bill for $1,000 for 2020, which will be paid in January 2021 • Dec. 31 - Paid a dividend of $5,000 to stockholders How much was Hallmark's current liabilities at December 31, 2020? $6,750 $12,000 $7,000 O $6,000 None of the above
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Hallmark Company began business on October 1, 2020. Following are some of the
company's transactions for the last three months of 2020:
• Oct. 1- Borrowed $30,000. No payments will be made until Oct. 1, 2022 and at that
time Hallmark will owe $36,000
• Nov. 2 - Bought $12,000 of inventory on account
• Dec. 8 - Sold $3,000 of inventory for $7,500 on account
Dec. 9 - Paid one-half of account payable
Dec. 31 - Received a utility bill for $1,000 for 2020, which will be paid in January 2021
Dec. 31 - Paid a dividend of $5,000 to stockholders
How much was Hallmark's current liabilities at December 31, 2020?
$6,750
$12,000
$7,000
$6,000
O None of the above
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