Question

Golden Enterprises started the year with the following: Assets $50,000 Liabilities $15,000 Common Stock $30,000 Retained Earnings $ 5,000 During the year, the company earned revenue of $2,500 all of which was received in cash, and incurred expenses of $1,500 all of which were unpaid as of the end In addition, the company paid dividends of $500 to owners. Assume no other activities occurred during the year.The amount of Golden's liabilities at the end of the year is:a. $15,000b. $16,500c. $14,000d. $16,000

Answer 1

Answer:

b. $16,500

Explanation:

To find out the liabilities at the end of the year we simply added the opening liabilities and the expenses that are unpaid at the end of the year

In mathematically,

Ending liabilities = Beginning balance of liabilities + expenses unpaid

                           =$15,000 + $1,500

                           = $16,500