Julia owes her dad $12. she wants a new blouse that just went on sale, so she borrows $20 from her sister. she pays her father $5 and spends the rest on the blouse. which statement is true?
julia’s money status is $8 because she started at –$12 and borrowed $20.
julia’s money status is –$7 because she started at –$12, got $20, but only paid $5 of her debt.
julia’s money status is –$27 because she started at –$12, borrowed $20, but paid off $5.
julia’s money status is –$32 because she began at –$12 and borrowed $20.

She owes her dad 12and pays back 5-12 + 5 = -7
she borrows 20 from sis-20

-7 - 20 = -27...started at -12, borrowed 20, but paid off 5...money status is -27

the complete question is
Julia owes her dad $12. She wants a new blouse that just went on sale, so she borrows $20 from her sister. She pays her father $5 and spends the rest on the blouse. Which statement is true?
A. Julia’s money status is $8 because she started at –$12 and borrowed $20.
B. Julia’s money status is –$7 because she started at –$12, got $20, but only paid $5 of her debt.
C. Julia’s money status is –$27 because she started at –$12, borrowed $20, but paid off $5.
D. Julia’s money status is –$32 because she began at –$12 and borrowed $20.

we know that
Julia owes her dad $12 already and again she borrowed $20 from her sister
So,
total debt = $12+$20=$ 32.
And,
she paid $5 only to her father.
So,
Her money status is
 -32+5 = -$27 

the answer is the option 
C. Julia’s money status is –$27 because she started at –$12, borrowed $20, but paid off $5.