Question

Chris's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $120,000 in net income and paid $15,000 in dividends. Total assets at the end of the year were $225,000. How much are total liabilities at the end of the year? $95,000 $105,000 $90,000 $110,000 $80,000

Answer 1

Answer:

How much are total liabilities at the end of the year?$80,000

Explanation:

                 Beg Balance      deb cre  End.Balance

Total assets              120000 105000         225000

Liabilities               80000                    80000

   

Equity                        40000                    40000

Earning                                       120000 120000

Dividens paid                          15000            -15000

Total equity             40000 15000 120000 145000

                                   0         120000 -120000 0