Ask Experts Questions for FREE Help !
Ask
    whokitty's Avatar
    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's Avatar
    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's Avatar
    bendingleconte Posts: 112, Reputation: 9
    Junior Member
    		  
    #3

    Aug 28, 2010, 07:33 AM

    Oh, and please post in the Homework link going forward. ;)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Year end total revenue from total expenses [ 2 Answers ]

I have a financial statement for a non-profit for four clinics, where you have to fill in the missing values. If you have a missing value for total revenue and have the value for total expenses and visa versa. How do you calculate the missing value? Do you obtain it from the...

Total Liabilities [ 1 Answers ]

If total liabilities increased by $5000, then: a. assets must have decreased by $5000 b. stockholder's equity must have increased by $50000 c. assets must have increased by $5000, or stockholders equity must have decreased by $5000 d. assets and stockholder's equity each increased by...

Find total equity for year end? [ 1 Answers ]

How do I find the equity for the following using the accounting equation? :confused: An company has assets equal to $123,000 and liabilities equal to $47,000 at year end. How do I figure out what the total equity for the year end would be? This is all the information I have available to me. ...

Accounting year end [ 2 Answers ]

Does a company have any advantages to choosing a fiscal year end of June 30 rather than a calendar year-end?

View more questions Search