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The financial statements of Calloway Company prepared at the end of the current year contained the following elements and corresponding amounts: Assets = $50,000; Liabilities = ?; Common Stock = $15,000; Revenue = $22,000; Dividends = $1,500; Beginning Retained Earnings = $3,500; Ending Retained Earnings = $7,500.
-Based on this information,what was the amount of expenses reported on Calloway's income statement for the current year?
A)$18,500
B)$13,000
C)$16,500
D)$10,000

Question

Quizplus · Accepted Answer

Beginning retained earnings + Revenue - Expenses - Dividends = Ending retained earnings
$3,500 + $22,000 - Expenses - $1,500 = $7,500
Expenses = $16,500

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