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.
-What was the amount of total liabilities reported on the balance sheet as of the end of the current year?
A)$27,500
B)$31,500
C)$35,000
D)$42,500

Question

Quizplus · Accepted Answer

Assets = Liabilities + Common Stock + Ending Retained Earnings
$50,000 = Liabilities + $15,000 + $7,500
Liabilities = $27,500

The Financial Statements of Calloway Company Prepared at the End