Question

Golden Enterprises started the year with the following: Assets $111,000; Liabilities $39,000; Common Stock $69,000; Retained Earnings $3,000. During the year, the company earned revenue of $5,900, all of which was received in cash, and incurred expenses of $3,450, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,900 to owners. Assume no other activities occurred during the year. The amount of Golden's assets at the end of the year is:

Answer 1

Answer:

$115,000

Explanation:

Ending assets= assets at the start of the year + revenue - dividend

Asset at the start of the year= $111,000

Revenue= $5,900

Dividend= $1,900

Therefore the amount of Golden assets at the end of the year can be calculated as follows

= $111,000 + $5,900-$1,900

= $116,900-$1,900

= $115,000

Hence the amount of Golden assets at the end of the year is $115,000