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-   -   Financial accounting (https://www.askmehelpdesk.com/showthread.php?t=589543)

  • Jul 26, 2011, 07:37 AM
    sun44dance
    Financial accounting
    Year end financial statement is assets $22,000 common stock $5,000 revenue $11,000 dividends $750 beginning retained earnings $3,750 ending retained earnings $6,000. The amount of liabilities reported on the end of period balance sheet was
  • Jul 26, 2011, 10:02 AM
    pready

    Liabilities = Assets - Owners Equity.

    So first thing you need to do is calculate Owners Equity, then you can calculate your Liabilities.
  • Jul 27, 2011, 06:22 AM
    sun44dance
    So it would be 11,000
  • Jul 27, 2011, 06:31 AM
    pready

    Common Stock is $5,000
    Ending Retained Earnings is $6,000
    So Ending Owners Equity is $11,000 (5,000 + 6,000)
    Liabilities = Assets of $22,000 - Owners Equity of $11,000
    Liabilities = $11,000

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