A company started the year with the following: Assets $100,000; Liabilities $30,000; Common Stock $60,000; Retained Earnings $10,000.During the year, the company earned revenue of $5,000, all of which was received in cash, and incurred expenses of $3,000, all of which were unpaid as of the end of the year.In addition, the company paid dividends of $1,000 to owners.Assume no other activities occurred during the year.
-Use the information above to answer the following question.The amount of liabilities at the end of the year is

Question

Quizplus · Accepted Answer

Starting liabilities = $30,000
Expenses incurred during the year = $3,000 (unpaid)
Dividends paid to owners = $1,000
Total liabilities at the end of the year = $30,000 + $3,000 + $1,000 = $33,000.

A Company Started the Year with the Following: Assets $100,000;