Question

The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $27,000; Liabilities = ?; Common Stock = $5,700; Revenue = $12,400; Dividends = $1,100; Beginning Retained Earnings = $4,100; Ending Retained Earnings = $7,700. The amount of liabilities reported on the end of period balance sheet was ?

Answer 1

The amount of liabilities reported on the end-of-period balance sheet can be calculated using the accounting equation. In this case, the liabilities are $17,700.

Step-by-step explanation:

The amount of liabilities reported on the end of period balance sheet can be calculated by using the accounting equation: Assets = Liabilities + Equity. We are given the following information: Assets = $27,000, Common Stock = $5,700, Revenue = $12,400, Dividends = $1,100, Beginning Retained Earnings = $4,100, and Ending Retained Earnings = $7,700. We can calculate the Liabilities as follows:

1. Calculate the change in Retained Earnings: Ending Retained Earnings - Beginning Retained Earnings = $7,700 - $4,100 = $3,600
2. Calculate the Net Income: Revenue - Expenses - Dividends = $12,400 - Expenses - $1,100. Since we are not given the Expenses, we cannot calculate the Net Income.
3. We know that Assets = Liabilities + Equity, and Equity = Common Stock + Retained Earnings. Therefore, $27,000 = Liabilities + ($5,700 + $3,600). Solving for Liabilities, we get Liabilities = $27,000 - $9,300 = $17,700

Therefore, the amount of liabilities reported on the end-of-period balance sheet is $17,700.

Answer 2

The amount of liabilities reported on the end of period balance sheet was:

$ 13.600

Step-by-step explanation:

Retained Earnings Report

Opening retained earnings $ 4.100

Add: Net Income $ 4.700

Subtotal $ 8.800

Less: Dividends -$ 1.100

Total $ 7.700

TOTAL ASSETS $27.000

TOTAL LIABILITIES $13.600

Common Stock $5.700

Retained Earnings $7.700

TOTAL EQUITY $13.400