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.
The amount of liabilities reported on the end-of-period balance sheet was
A) $10,750.
B) $11,250.
C) $8,000.
D) $8,750.

Question

Quizplus · Accepted Answer

Assets = Liabilities + Common Stock + Ending Retained Earnings$20,000 = Liabilities + $5,000 + $7,000Liabilities = $8,000

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