The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $20,000; Liabilities = ?; Common Stock = $5,000; Revenue = $11,000; Dividends = $750; Beginning Retained Earnings = $3,750; Ending Retained Earnings = $7,000.
Based on this information, the amount of expenses on Greenway's income statement was
A) $7,000.
B) $7,750.
C) $14,000.
D) $3,250.

Question

Quizplus · Accepted Answer

Beginning retained earnings + Revenue - Expenses - Dividends = Ending retained earnings$3,750 + $11,000 - Expenses - $750 = $7,000Expenses = $7,000

The Year-End Financial Statements of Greenway Company Contained the Following