At the beginning of the year,Execon Company had total assets of $200,000,total liabilities of $110,000,and shareholders' equity of $90,000.For the year,Execon Company earned net income of $75,000 and declared cash dividends of $30,000.At the end of the year,the company had total assets of $300,000 and its shareholders' equity was at $135,000.At the end of the year,Execon Corporation had total liabilities of:
A)$0.
B)$45,000.
C)$50,000.
D)$165,000.
E)None of the answers are correct.

Question

Quizplus · Accepted Answer

The accounting equation states that Assets = Liabilities + Shareholders' Equity. At the end of the year, Execon Company's total assets were $300,000 and shareholders' equity was $135,000. Using the equation, $300,000 = Liabilities + $135,000. Therefore, Liabilities = $300,000 - $135,000 = $165,000.

At the Beginning of the Year,Execon Company Had Total Assets