Answer:
Total liabilities is $23,200
Explanation:
In this question,we apply the accounting equation which is shown below:
Total assets = Total liabilities + shareholder's equity
$39,000 = Total liabilities + $6,900 + $8,900
$39,000 = Total liabilities + $15,800
So, the total liabilities equal to
= $39,000 - $15,800
= $23,200
The shareholder's equity includes Common Stock and the ending retained earning balance and the same we take in the computation part.
