FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The company had the following final balances after the Arst year af aperations: assets, $45,000, stockhalder equity, $25,000; dividends, $3,000; and net income, $10,000. What is the amount of the tompany
liabilities?
A $13,000.
B $7,000.
C $40,000.
D $65,000.
Expert Solution
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Step 1
solution
given
Assets |
45000 |
Stock holders equity |
25000 |
Net income |
10000 |
Dividends |
3000 |
Liabilities |
? |
Using the accounting equation
Asset = stock holders equity + liabilities
Stockholders equity = 25000 + net income – dividend
=25000+ 10000 – 3000
=32000
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