At the End of the First Month of Operations for SloMo

Multiple Choice

At the end of the first month of operations for SloMo Delivery Service,the business had the following accounts: Accounts Receivable,$1,200;Prepaid Insurance,$500;Equipment,$36,200 and Cash,$40,650.On the same date,SloMo owed the following creditors: Simpson Supply Company,$12,000;Allen Office Equipment,$9,500. The total amount of Liabilities is

A) $36,200.
B) $9,500.
C) $21,500.
D) $40,650.