whokitty Posts: 1, Reputation: 1 New Member #1 Aug 28, 2010, 05:08 AM
How to determine total liabilities at the end of the year in accounting
Total assets \$120,00, Stockholdedrs' equity is \$40,000, during the year income earned is \$90,000, and paid \$20,000 in dividends. Total assets at the end of the year were \$215,000. What was the total liabilities at the end of the year?
 bendingleconte Posts: 112, Reputation: 9 Junior Member #2 Aug 28, 2010, 07:30 AM

Assets = Liab. + SEquity
Therefore, Liab. = Assets - SEquity

First find Stockholder Equity for end of year.

\$40,000 SE (beginning)
+90,000 Net Income
-20,000 Dividends
= \$110,000 SEquity (end of year)

Assets (\$215,000) = Liab. (X) - SEquity (\$110,000)

Liab. (X) = (\$215,000) - (\$110,000)

Liabilities = \$105,000
 bendingleconte Posts: 112, Reputation: 9 Junior Member #3 Aug 28, 2010, 07:33 AM

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