Mouser Pet Supplies Had the Following Transactions During December 2019

Multiple Choice

Mouser Pet Supplies had the following transactions during December 2019:
•Paid a note of $102,000, owed since March, plus $2,550 for interest.
•Sold $219,150 of merchandise to customers on account. Cost of goods sold was $127,500. [Hint: Cost of goods sold is an expense related to the reduction of inventory (merchandise sold) .]
•Paid accounts payable of $12,300.
As a result of these transactions, at year-end, liabilities and stockholders' equity would show a combined total:

A) Decrease by $ 25,200
B) Increase by $ 28,800
C) Decrease by $ 80,550
D) Decrease by $ 27,450