Question

Golden Enterprises started the year with the following: Assets $131,000; Liabilities $44,000; Common Stock $74,000; Retained Earnings $13,000. During the year, the company earned revenue of $6,900, all of which was received in cash, and incurred expenses of $3,950, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $2,900 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:

$13,050

Explanation:

Golden assets started the year with assess of $131,000

Liabilities is $44,000

Common stock $74,000

Retained earnings $13,000

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

=13,000+(6,900-3,950)-2,900

=13,000+2950-2,900

= $13,050

Hence the amount of golden assets at the end of the year is $13,050