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

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

Step-by-step 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